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Bad Company has a new 4-year project that will have annual sales of 9,800 units. The...

Bad Company has a new 4-year project that will have annual sales of 9,800 units. The price per unit is $21.30 and the variable cost per unit is $9.05. The project will require fixed assets of $108,000, which will be depreciated on a 3-year MACRS schedule. The annual depreciation percentages are 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. Fixed costs are $48,000 per year and the tax rate is 40 percent. What is the operating cash flow for Year 3?

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The formulas and the inputs used is as follows:

The result is as follows:

jeff jeffy answered 1 year ago
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