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A company will sell Widgets to consumers at a price of $108 per unit. The variable cost to produce Widgets is $49 per unit. The

A company will sell Widgets to consumers at a price of $108 per unit. The variable cost to produce Widgets is $49 per unit. The company expects to sell 11,000 Widgets to consumers each year. The fixed costs incurred each year will be $170,000. There is an initial investment to produce the goods of $3,300,000 which will be depreciated straight line over the 17 year life of the investment to a salvage value of $0. The opportunity cost of capital is 14% and the tax rate is 30%.

What is operating cash flow each year?

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