Rock Haven has a proposed project that will generate sales of 1,995 units annually at a selling price of $41 each. The fixed costs are $22,400 and the variable costs per unit are $13.55. The project requires $39,400 of fixed assets that will be depreciated on a straight-line basis to a zero book value over the 4-year life of the project. The salvage value of the fixed assets is $10,700 and the tax rate is 21 percent. What is the operating cash flow?
Multiple Choice
$17,588
$27,635
$14,774
$28,620
$34,826