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Based on some market research you expect to sell around 200,000 bottles of V-Drink a year at wholesale price of $1.9. Operating costs (excluding depreciation)
Based on some market research you expect to sell around 200,000 bottles of V-Drink a year at wholesale price of $1.9. Operating costs (excluding depreciation) are expected to be 50% of revenue. The firms tax rate is 40%. What is the annual operating cash flow associated with this project in year 2. (Note you will need to factor in $30,000 in depreciation in year 2 from the prior question).
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