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A company sells Gizmos to consumers at a price of $118 per unit. The costs to produce Gizmos is $22 per unit. The company
A company sells Gizmos to consumers at a price of $118 per unit. The costs to produce Gizmos is $22 per unit. The company will sell 14,000 Gizmos to consumers each year. The fixed costs incurred each year will be $180,000. There is an initial investment to produce the goods of $2,900,000 which will be depreciated straight line over 10 year life of the investment to a salvage value of $0. The opportunity cost of capital is 9% and the tax rate is 39%. What is operating cash flow each year? 823140 Correct response: 823,14010 Click "Verify" to proceed to the next part of the question.
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