A company will sell Thingamabobs to consumers at a price of $117 per unit. The variable cost to produce Thingamabobs is $44 per unit. The company expects to sell 16,000 Thingamabobs to consumers each year. The fixed costs incurred each year will be $130,000. There is an initial investment to produce the goods of $3,400,000 which will be depreciated straight line over the 15 year life of the investment to a salvage value of $0. The opportunity cost of capital is 14% and the tax rate is 31%.

a. What is operating cash flow each year?

b. using the an annual operating cash flow of question a. What's the net present value of this investment?

should the company accept or reject this project?