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Grady Precision Measurement Tools has forecasted the following sales and costs for a new GPS system: annual sales of 5 0 , 0 0 0

Grady Precision Measurement Tools has forecasted the following sales and costs for a new GPS system: annual sales of 50,000 units at $20 a unit, production costs at 40% of sales price, annual fixed costs for production at $120,000, and straight-line depreciation expense of $240,000 per year. The company tax rate is 30%. What is the annual operating cash flow of the new GPS system?

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