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Item9
Rock Haven has a proposed project that will generate sales of 1,890 units annually at a selling price of $34 each. The fixed costs are $18,900 and the variable costs per unit are $10.75. The project requires $35,200 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 $9,300 and the tax rate is 21 percent. What is the operating cash flow?
Multiple Choice
$11,506
$23,110
$13,536
$21,632
$28,496