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2. Your company may introduce a new line of tennis rackets. Initial Investment of $1,000,000, straight line depreciated to 0 salvage value over 5 year

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2. Your company may introduce a new line of tennis rackets. Initial Investment of $1,000,000, straight line depreciated to 0 salvage value over 5 year life. Sales: 25,000 units $55 per unit, Variable Costs: $25 per unit, Fixed Costs: $200,000 per year. What is the annual OCF for this project if the tax rate is 40%

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