Calculate the after tax cash flow for one year for the following scenario: 7 points

• Annual gross revenue is $1 million
• OPEX is $200,000 per year
• Royalties are 15%
• Income tax is 30%
• The facility originally cost $1.5 million and is currently being amortized over 10 year (remember if you amortize, you have to deduct using the straight line method!)
• Depreciation of the equipment in the facility, which cost $500,000, is currently being depreciated using the straight line method over 5 years
• There is no loss carried forward, no depletion or interest