A proposed new project has projected sales of 119000 costs...

A proposed new project has projected sales of $119,000, costs of $60,200, and depreciation of $4,200. The tax rate is 21 percent. Calculate operating cash flow using the four different approaches. The EBIT approach The bottom-up approach The top-down approach The tax-shield ppproach Prev Question 14 of 40 Total14 of 40 Visit question mapScore answer

[Extra 3 points from chapter 7] Assume a project has these estimated values: Sales quantity of 4,000 units, plus or minus 5 percent; variable cost per unit of $17, plus or minus 3 percent; fixed costs of $45,000, plus or minus 2 percent; depreciation of $17,000; and a sales price of $40 a unit, plus or minus 10 percent. The tax rate is 34 percent. The company bases its sensitivity analysis on the expected case scenario. (Answer format: keep the integer, no comma, and no dollar sign. e.g., 1234.6 -> 1235) 1) Fill in the blanks 2) What will be the operating cash flow under best-case scenario and worse-case scenario? Hint: OCF = (NI - depreciation)*(1- tax rate) + depreciation, where NI = revenue - cost (1) Sale unit (2) Sale price per unit (3) Revenue = (1)x(2) (4) Cost = (1) xunit cost + fixed cost Optimistic 4,200 = 4,000*(1+.05) $44 = 40*(1+.1) $184,800 $113,358 = 4,200x17x(1-.03)+45,000x(1-.02) Expected 4,000 40 160,000 $113,000 = 4,000x17+45,000 Pessimistic

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