QUESTION

60. Rock Haven has a proposed project that will generate sales of 1,680 units annually at a selling price of $22 each. T

Category: Business
Subject: Finance
Due Date: 02/02/2016
Question Asked: 2016-02-03 02:52:23

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60. Rock Haven has a proposed project that will generate sales of 1,680 units annually at a selling price of $22 each. The fixed costs are $12,700 and the variable costs per unit are $5.95. The project requires $28,000 of fixed assets that will be depreciated on a straight-line basis to a zero book value over the 4-year life of the project. The salvage value of the fixed assets is $6,900 and the tax rate is 34 percent. What is the operating cash flow for year four? 
A. $11,794
B. $12,417
C. $14,258
D. $16,348
E. $16,971


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60. Rock Haven has a proposed project that will generate sales of 1,680 units annually at a selling price of $22 each. T

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Posted on 2016-02-03 02:52:23

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...ght-line basis to a zero book value over the 4-year life of the project. The salvage value of the fixed as...

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