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A company will sell Gizmos to consumers at a price of $107 per unit. The variable cost to produce Gizmos is $43 per unit. The
A company will sell Gizmos to consumers at a price of $107 per unit. The variable cost to produce Gizmos is $43 per unit. The company expects to sell 10,000 Gizmos to consumers each year. The fixed costs incurred each year will be $250,000. There is an initial investment to produce the goods of $3,300,000 which will be depreciated straight line over the 13 year life of the investment to a salvage value of $0. The opportunity cost of capital is 14% and the tax rate is 29% What is operating cash flow each year? Number
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