Problem $7$

Intro

The Samsung marketing department has estimated demand for a new device and expects to sell $4$ million units at

a price of $$290$ 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 $$190$ per unit. Samsung's marginal tax rate is $0\mathrm{.}34,$ and the annual depreciation attributable

to the project is $$40$ million.

Part $1$

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

Part $2$

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