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Huffman Systems has forecasted sales for its new home alarm systems to be 63,000 units per year at $38.50 per unit. The cost to produce

Huffman Systems has forecasted sales for its new home alarm systems to be 63,000 units per year at $38.50 per unit. The cost to produce each unit is expected to be 42% of the sales price. The new product will have an additional $494,000 fixed costs each year, and the manufacturing equipment will have an initial cost of $2,400,000 and will be depreciated over eight years on a straight line basis. The company has a tax rate of 40%. What is the annual operating cash flow for the alarm systems if the projected sales and price per unit are constant of the next eight years?

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