Estimated sales Sales Price per can Cost per can Estimated life Fixed costs Tax rate Initial equipment cost Initial equipment cost will be linearly depreciated over 4 year life with 0 salvage value Investment in NWC 30,000 cans $6.00 $2.00 Cost of capital What is the operating cash flow? $58,000 $59,000 $52,100 $50,000 4 years $50,000/year $40,000 $10,000 20% 10%