NPV$.$Grady Precision Measurement Tools has forecasted the following sales and costs for a new GPS$$ system: annual sales of $45$ comma $000$

units at $$$$17$

a$$ unit, production costs at $38$

$\%$

of sales$$ price, annual fixed costs for production at $ $200$ comma $000$

$.$

The company tax rate is $40$

$\%.$

What is the annual operating cash flow of the new GPS$$ system? Should Grady Precision Measurement Tools add the GPS system to its set of$$ products? The initial investment is $$$$1$ comma $440$ comma $000$

for manufacturing$$ equipment, which will be depreciated over six years$($straight line$)$ and will be sold at the end of five years for $ $380$ comma $000$

$.$

The cost of capital is $12$

$\%.$