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Equipment value will be linearly and fully depreciated over 3 year life.What is the operating cash flow? Estimated sales 4 0 , 0 0

Equipment value will be linearly and fully depreciated over $3$ year life.What is the operating cash flow?

Estimated sales

40, 000

cans

Sales Price per can $

4.00

Cost per can $

3

Estimated life

3

years

Fixed costs $

10, 000 /

year

Initial equipment cost $

60, 000

Investment in NWC $

10, 000

Tax rate

20 %

Cost of capital

10 %

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