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…

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
 
“Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!”

"Is this question part of your assignment? We will write the assignment for you. click order now and get up to 40% Discount"