Assume a Project Has a Sales Quantity of 7,400 Units

Multiple Choice

Assume a project has a sales quantity of 7,400 units, ±6 percent and a sales price of $59 a 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 best-case scenario?

A) $136,759
B) $118,470
C) $145,705
D) $134,208
E) $124,220