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ACME has forecasted the following sales and costs for a new product line: annual sales of 1 0 0 , 0 0 0 units at

ACME has forecasted the following sales and costs for a new product line: annual sales of 100,000 units at $30 a unit, production costs are 50% of the sales, annual fixed costs are $500,000, and the manufacturing equipment costs 3,000,000. The equipment will be depreciated over 10 years using straight-line depreciation. The company tax rate is 25% and has zero interest expense. What is operating cash flow? The answer is 825,000. Please explain why it is 825,000. Show your work. I appreciate it!

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