Question
Grady Precision Measurement Tools has forecasted the following sales and costs for a new GPSsystem: annual sales of 40,000 units at $ 18 a unit,
Grady Precision Measurement Tools has forecasted the following sales and costs for a new GPSsystem: annual sales of
40,000 units at $18 a unit, production costs at 39% of salesprice, annual fixed costs for production at $130,000, andstraight-line depreciation expense of $220,000 per year. The company tax rate is 40%. What is the annual operating cash flow of the new GPSsystem?
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Personal Financial Planning
Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk
14th edition
978-1305887725, 1305887727, 1305636619, 978-1305636613
