Awal Co. has a proposed project that will generate sales of 1094units annually at a selling price of $24 each. The fixed costs are $12017 and the variable costs per unit are $4.46. The project requires $30659 of fixed assets that will be depreciated on a straight-line basis to a zero book value over the 7-year life of the project. The salvage value of the fixed assets is $8,100 and the tax rate is 22 percent. What is the operating cash flow?
