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Estimated sales 3 0 , 0 0 0 cans Sales Price per can $ 6 . 0 0 Cost per can $ 2 . 0

Estimated sales 30,000 cans
Sales Price per can $6.00
Cost per can $2.00
Estimated life 4 years
Fixed costs $50,000/year
Initial equipment cost $40,000
Initial equipment cost will be linearly depreciated over 4 year life with 0 salvage value
Investment in NWC $10,000
Tax rate 20%
Cost of capital 10%
What is the operating cash flow?

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