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Best Case Operating Cash Flow

You are analyzing a project and have developed the following estimates. The depreciation is $72,000 a year and the tax rate is 35 percent. What is the best case operating cash flow?

Base Case Lower Bound Upper Bound
Unit Sales 2700 2400 2900
Price Per Unit $210 $190 $220
Variable Cost per unit $140 $130 $160
Fixed Cost $27,000 $25,500 $28,500

1. 119775
2. 138275
3. 153075
4. 164775
5. 178275

Solution Preview

The best case scenario will have the highest unit sales at the highest price with lowest ...

Solution Summary

The solution explains how to calculate the best case operating cash flow for a project given the upper and lower bounds for various variables.

$2.19