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nikdorinn [45]
2 years ago
5

You are analyzing a project and have developed the following estimates. The depreciation is $11,000 a year and the tax rate is 3

4 percent. What is the worst-case operating cash flow?
Base case Lower Bound Upper Bound
Unit sales 3,100 2500 3400
Sales price $19 $16 $22
Variable cost per unit $12 $14 $10
Fixed costs $8200 $8500 $7800

a. -$1,311
b. -$641
c. $274
d. $599
e. $1,206
Business
1 answer:
77julia77 [94]2 years ago
8 0

Answer:

no option is correct, check the question to see if it was copied correctly and check the work to verify my answer

$1,430

Explanation:

worst case scenario:

2,500 units sold at $16 = $40,000

variable cost per unit $14 x 2,500 units = $35,000

contribution margin = $5,000

fixed costs = $8,500

depreciation expense = $11,000

cash flow = [(contribution margin - fixed costs - depreciation) x (1 - tax rate)] + depreciation

cash flow = [($5,000 - $8,500 - $11,000) x 0.66] + $11,000 = $1,430

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The money a company has on hand to cover both its ongoing expenses and potential future expansion is known as capital. Working capital, debt, equity, and trade capital are the four main types of financial resources.

<h3>What kind of business venture capital is that?</h3>

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7 0
1 year ago
Suppose interest rates in the UK fall. This will affect the side of the foreign exchange market and cause exchange rates to
maw [93]

A fall in the interest rates in the UK, would cause the exchange rate of the UK to decline.

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5 0
2 years ago
Extensive collections of published works in electronic form are called
Solnce55 [7]
The correct <span>answer is Digital Library.

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4 0
3 years ago
asmine Smith owns a condo worth $250,000, a car valued at $15,000, and miscellaneous assets worth $7,500. She owes $190,000 on t
tester [92]

Answer:

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Explanation:

The total liabilities of Asmine Smith is computed as:

Total Liabilities = Owing on Condo + Owning a Car

where

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Owning a Car is $10,000

Putting the values above:

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4 0
3 years ago
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Viktor [21]
The answer is probably national
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3 years ago
Read 2 more answers
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