Rock Haven has a proposed project that will generate sales of 1,860 units annually at...

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Finance

Rock Haven has a proposed project that will generate sales of 1,860 units annually at a selling price of $32 each. The fixed costs are $17,900 and the variable costs per unit are $9.95. The project requires $34,000 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 $8,900 and the tax rate is 35 percent. What is the operating cash flow?

$17,998

$12,048

$21,568

$26,923

$11,065

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