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What is the operating cash flow for year 5

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Reference no: EM131318413

Firm X has a proposed project that will generate sales of 2,750 units at a selling price of $36 each. The fixed costs are $18,000 and the variable costs per unit are $21. The project requires $36,000 of fixed assets that will be depreciated on a straight-line basis to a zero book value over the 5-year life of the project. The salvage value of the fixed assets is $8,400 and the tax rate is 34 percent. What is the operating cash flow for year 5?

A. $15,345
B. $17,793
C. $16,408
D. $19,929

Reference no: EM131318413

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