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A company will sell Gizmos to consumers at a price of $111 per unit. The variable cost to produce Gizmos is $43 per unit. The
A company will sell Gizmos to consumers at a price of $111 per unit. The variable cost to produce Gizmos is $43 per unit. The company expects to sell 19,000 Gizmos to consumers each year. The fixed costs incurred each year will be $170,000. There is an initial investment to produce the goods of $3,900,000 which will be depreciated straight line over the 8 year life of the investment to a salvage value of 50. The opportunity cost of capital is 6% and the tax rate is 30% What is operating cash flow each year? Number Click "Verify" to proceed to the next part of the question. Section Attempt 1 of 1 Verify
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