Question
ABC,Inc is planning the purchase of new equipment that costs $145,649. The project is expected to last for 5 years. Each year, the new project
ABC,Inc is planning the purchase of new equipment that costs $145,649. The project is expected to last for 5 years. Each year, the new project is expected to sell 181 units for $385 per unit. The variable costs are expected to $55 per unit and the fixed costs are expected to be $23,515. The equipment will be depreciated on a straight-line basis over the 5-year life of the project. That is, the depreciation each year will be $145,649/5. Assuming a tax rate of 25%, what is the operating cash flow?
Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.
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