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A company will sell Thingamajigs to consumers at a price of $87 per unit. The variable cost to produce Thingamajigs is $20 per unit. The

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A company will sell Thingamajigs to consumers at a price of $87 per unit. The variable cost to produce Thingamajigs is $20 per unit. The company expects to sell 20,000 Thingamajigs to consumers each year. The fixed costs incurred each year will be $110,000. There is an initial investment to produce the goods of $3,900,000 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 8% and the tax rate is 39%. What is operating cash flow each year? Number

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