What is the operating cash flow for a sensitivity analysis

Assignment Help Finance Basics

Reference no: EM13263932

Stellar Plastics is analyzing a proposed project. The company expects to sell 12,000 units, plus or minus 5 percent. The expected variable cost per unit is $3.20 and the expected fixed costs are $30,000. The fixed and variable cost estimates are considered accurate within a plus or minus 5 percent range. The depreciation expense is $24,000. The tax rate is 34 percent. The sales price is estimated at $7.50 a unit, plus or minus 4 percent. What is the operating cash flow for a sensitivity analysis using total fixed costs of $31,000?

A) $19580
B) $21756
C) $27210
D) $31460
E) $37540

Reference no: EM13263932

Questions Cloud

What is the ratio of primary voltage to primary turns : In designing a transformer, an engineer knows she needs 240 V to come out of the secondary circuit. what is the ratio of primary voltage to primary turns

Compute the statutary property tax rate : Exemptions for the elderly reduce assessed value by $3,000,000. The city has a planned budget of $3,500,000 and expects to receive $750,000 in nonproperty tax revenue.

Compute integral and deretmine if signal is finite : discharge a capacitor of 1mF charged with a voltage of 1 volt we connect it, at time t = 0, with a esistor of R ohm. When we measure the voltage we find it to be V(r) (t) = e ^(-t) u(t). Determine the resistance of R. If the capacitor has a capaci..

Suppose you are working with a data set that is normally : Suppose you are working with a data set that is normally distributed with a mean of 400 and a standard deviation of 20. Determine the value of x such that only 1% of the values are greater than x. (how to find the value of x with z score)

What is the operating cash flow for a sensitivity analysis : The tax rate is 34 percent. The sales price is estimated at $7.50 a unit, plus or minus 4 percent. What is the operating cash flow for a sensitivity analysis using total fixed costs of $31,000?

Find the velocity of the combined bodies : A 2 kg car moving towards the right at 4 m/s collides head on with an 8 kg car moving towards the left at 2 m/s, After the collision, the velocity of the combined bodies is

What is the pv of your project : Given the above information about PhelpCo, what is the appropriate discount rate that should be applied to the cash flows of your project?

What is percentage of aliasing level at cutoff frequency : The sampling frequency in a DSP system is fs=16 kHz. Anti-aliasing filter used in the system is the second-order Butterworth filter with cutoff frequency of fc=4.2 kHz. What is the percentage of aliasing level at the cutoff frequency

Explain what the opm is all about : The Black Scholes OPM was a major break-through in find the value of Options and other types of investments. Please explain what the OPM is all about and what is it that gives investors some assurance of correctness when Valuing certain types of i..

User Account

All Pages