Widgets is considering a new investment that has a projected unitsales in year 1 of 1000 units. sales price per unit is $80,variable costs are 60% of sales, and fixed costs are $200,000depreciation is 75,000 and the tax rate is 21%
what is the projects operating cash flow for year 1?
what is the depreciation tax shield in year 1?
how sensitive is the operating cash flow to a $1 change in perunit sales price
you feel that both sales and variable costs are accurate to+/- 15% what is the annual operating cash flow?
Thelast part of the question states \"You feel that both sales andvariable costs are accurate -/+ 15%. What is the annual operatingcash flow for the best-case scenario?\" I'm not certain on what todo with the variable costs, but I am sure that sales go up 15% fromthe 1000. does this imply that variable costs go down 15% from 60%or the number that is calculated after sales
Allfigures are correct. which is why im running into issues i think imdoing it correctly but I have no idea on the answers.
