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A company will sell Gizmos to consumers at a price of $89 per unit. The variable cost to produce Gizmos is $30 per unit. The
A company will sell Gizmos to consumers at a price of $89 per unit. The variable cost to produce Gizmos is $30 per unit. The company expects to sell 17,000 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 10 year life of the investment to a salvage value of $0. The opportunity cost of capital is 10% and the tax rate is 33%. What is operating cash flow each year? Number Click "Verify" to proceed to the next part of the
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