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    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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    https://brainmass.com/business/finance/corporate-finance-selling-price-operating-cash-flow-448053

    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.

    $2.19

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