Proposed project-what is the operating cash flow

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Reference no: EM131511427

ABC Company has a proposed project that will generate sales of 289 units annually at a selling price of $183 each. The fixed costs are $7,420 and the variable costs per unit are $59. The project requires $13,842 of equipment that will be depreciated on a straight-line basis to a zero book value over the 13-year life of the project. That is, depreciation each year is $13,842/13. The tax rate is 31 percent. What is the operating cash flow?

Round of to two decimals points

Reference no: EM131511427

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