26 3 3 Assume a project has a sales quantity of 7,400 units, +6 percent...

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26 3 3 Assume a project has a sales quantity of 7,400 units, +6 percent and a sales price of $59 per unit, +1 percent. The expected variable cost per unit is $13, +3 percent, and the expected fixed costs are $214,000, +2 percent. The depreciation expense is $63,000 and the tax rate is 23 percent. What is the operating cash flow under the worst-case scenario? A. B. C. 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 $73,056.92 $87,546.92 $98,315.90 $111,818.00 $125,456.86 D. E. 4 Suppose there are only corporate taxes in the economy, then the firm value is maximized when: A. B. 4 debt-equity ratio is equal to one. debt-equity ratio is equal to zero. debt-equity ratio results in the lowest firm value. the ratio of debt to (debt+equity) is equal to one. None of the above is correct D. 45

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