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A company sells Gizmos to consumers at a price of $ 8 9 per unit. The costs to produce Gizmos is $ 4 9 per

A company sells Gizmos to consumers at a price of $89 per unit. The costs to produce Gizmos is $49 per unit. The company will sell 15,000 Gizmos to consumers each year. The fixed costs incurred each year will be $160,000. There is an initial investment to produce the goods of $2,400,000 which will be depreciated straight line over 9 year life of the investment to a salvage value of $0. The opportunity cost of capital is 5% and the tax rate is 26%.
What is operating cash flow each year?
394,933.33
Correct response: 394,933.33\pm 10
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Using an operating cash flow of 394,933.33 each year, what is the NPV of this project?
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