Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. lawrence manufacturing is analyzing a proposed 3-y

Lawrence Manufacturing is analyzing a proposed 3-year project using standard sensitivity analysis. The company expects...

50.1K

Verified Solution

Question

Accounting

Lawrence Manufacturing is analyzing a proposed 3-year project using standard sensitivity analysis. The company expects to sell 15,000 units, 4 percent. The expected variable cost per unit is $7 and the expected fixed costs are $36,000. The fixed and variable cost estimates are considered accurate within a 6 percent range. The sales price is estimated at $14 a unit, 5 percent. The project requires an initial investment of $90,000 for equipment that will be depreciated using the straight-line method to zero over the project's life. The equipment can be sold for $39,000 at the end of the project. The project requires $11,200 in net working capital for the three years. The discount rate is 11 percent and tax rate is 34 percent. What is the operating cash flow under the optimistic case scenario? (show work please)

$68,452.78

$71,469.12

$77,429.53

$82,722.18

$87,394.40

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

what might you look for as a signature of life on the red planet (mars)? What...

Biology
Q

1. Name the specializations of the small intestine from largest to smallest structure. What is their...

Medical Sciences
Q

A 40 ml sample of .50 M solution of HOCl is titrated with .20 M NaOH a)...

Chemistry
Q

-- Consider a concentration cell. Two Ag-electrodes are immersed in AgNO3 solutions of different concentrations. When...

Chemistry
Q

Write a linear program for the following problem. (Do not solve.) A ship is transporting rice and...

Advance Math
Q

Do you think it is proper for a company to force employees not to discuss how...

Accounting
Q

a Find the percentage of the are b Find the percentage of the 20 67...

Basic Math
Q

A vending machine sells chips for $0.50 andcandy bars for $1.00. If Jim spent $5.50...

Basic Math
Q

Researchers wanted to determine if there was an association between the level of satisfaction of...

Statistics
Q

QS 4-3 (Algo) Merchandise accounts and computations LO C1 Use the following information (in random...

Accounting
Q

On the other hand, resources, such as accountants, business analysts, and I/T specialists who rely...

Accounting
Q

On August 3 the company paid rent for months August, September, October, November and December...

Accounting