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ABC, Inc is planning the purchase of new equipment that costs $135536. The project is expected to last for 14 years. Each year, the new
ABC, Inc is planning the purchase of new equipment that costs $135536. The project is expected to last for 14 years. Each year, the new project is expected to sell 183 units for $398 per unit. The variable costs are expected to $81 per unit and the fixed costs are expected to be $20390. The equipment will be depreciated on a straight-line basis over the 14-year life of the project. That is, the depreciation each year will be $135536/14. Assuming a tax rate of 35%, what is the operating cash flow?
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