Is analyzing a proposed project: What is best case operating cash flow?
Thomas Mfg. is analyzing a proposed project. The company expects to sell 8000 units. plus or minus 2%. The expected variable cost per unit is $11. and the expected fixed costs are $287,000. The fixed and variable cost estimates are considered accurate within a plus or minus 5 % range. The depreciation expense is $68,000. The tax rate is 32%. The sales price is estimated at $64. a unit give or take 3%. What is the operating cash flow under the best case scenario?
a. $144,150.
b. $148,475
c. $107,146
d. $168,630
e. $174,220