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Rock Haven has a proposed project that will ente sales of 1845 annually at a selling price of 531 each. The feed costs are $1
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Operating Cash Flow = [Units Sold * (Selling price per unit – Variable cost per unit) – Fixed Cost] * (1-tax rate) + (Cost of Assets / No. of Useful life) * tax rate
Operating Cash [1,845 * ($31 - $9.55) - $17,400] * (1 – 0.34) + ($33,400 / 4) * 0.34
Operating Cash Flow = [1,845 * 21.45 - $17,400] *0.66 + $8,350 * 0.34
Operating Cash Flow = [$39,575.25 - $17,400] * 0.66 + $2,839
Operating Cash Flow = $22,175.25 * 0.66 + $2,839
Opearting Cash Flow = $14,635.67 + $2,839
Operating Cash Flow =$17,474.67

                                                                                                                     

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