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ABC,Inc is planning the purchase of new equipment that costs $186,270. The project is expected to last for 8 years. Each year, the new project
ABC,Inc is planning the purchase of new equipment that costs $186,270. The project is expected to last for 8 years. Each year, the new project is expected to sell 187 units for $457 per unit. The variable costs are expected to $25 per unit and the fixed costs are expected to be $13,737. The equipment will be depreciated on a straight-line basis over the 8-year life of the project.That is, the depreciation each year will be $186,270/8. Assuming a tax rate of39%, what is the operating cash flow?
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