Corporate Finance: Selling Price and Operating Cash Flow
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Please help with the following problem.
Newton Industries is considering a project and has developed the following estimates: unit sales = 7,300, price per unit = $149, variable cost per unit = $91, fixed costs = $216,400. The depreciation is $94,700 a year and the tax rate is 35 percent. What effect would an increase of $1 in the selling price have on the operating cash flow?
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Solution Summary
This posting helps with a corporate finance question. It answers the question regarding the effect an increase of a dollar in the selling price would have on operating cash flow. The solution is provided in Excel.
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