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Floyd Inc. has decided to manufacture and sell a new line of high - priced commercial mowers. Annual sales for the new line of mowers

Floyd Inc. has decided to manufacture and sell a new line of high-priced commercial mowers. Annual sales for the new line of mowers is estimated at $900,000 a year for each of the next 20 years. The variable costs are 40% of sales and fixed costs are $200,000 annually. A marketing study that cost $1,000,000 done six months ago revealed that introducing this new line of mowers will result in lost sales of existing products of $30,000 a year. The lost sales have a variable cost of $10,000 a year.
The plant and equipment required for producing the new line of mowers costs $2,000,000(today) and will be depreciated down to zero over 20 years using straight-line depreciation. The plant and equipment is sold for $400,000 at the end of 20 years. Net working capital increases by $100,000 at the beginning of the project (year 0) and it is reduced back to its original level in the final year. The tax rate is 20 percent and the discounting rate for the project is 10%.
What is the annual Operating Cash FLow (OCF) for the new project (new line of high-priced commercial mowers)?
For your answer, DO NOT USE commas to separate thousands and round to the nearest dollar. DO NOT use the $ symbol. If the number is negative, then enter the minus symbol (--) in front of the first digit. for example if the result is 4,002,000.89 then enter 4002001
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