Intro

The Samsung marketing department has estimated demand for a new device and expects to sell 1 million units at a price of $270 each.

It costs $50 million each year to run the factory, independent of the level of production. Labor and components for each device add up to $170 per unit. Samsung's marginal tax rate is 0.34, and the annual depreciation attributable to the project is $40 million.

Attempt 1/8 for 10 pts.

Part 1

What is EBIT in each year of operation (in $ million)?

Submit

Attempt 1/8 for 10 pts.

Part 2

What is the cash flow in each year of operation (in $ million)?

Submit