The economic definition of money is: a. a good that has intrinsic value. b. anything of value owned by a person or a firm. c. any asset that people are generally willing to accept in exchange for goods and services. d. anything authorized by the government to be used in an exchange.

Aproject currently generates sales of $14 million, variable costs equal 50% of sales, and fixed costs are $2.8 million. the firm’s tax rate is 40%. assume all sales and expenses are cash items. (a). what are the effects on cash flow, if sales increase from $14 million to $15.4 million? (input the amount as positive value. enter your answer in dollars not in (b) what are the effects on cash flow, if variable costs increase to 60% of sales? (input the amount as positive value. enter your answers in dollars not in millions). cash flow (increase or decrease) by $