Problem

Intro

The Samsung marketing department has estimated demand for a new device and expects to sell $3$ million units at a price of $$370$ each.

It costs $$50$ million each year to run the factory, independent of the level of production. Labor and components for each device add up to $$270$ per unit.

Samsung's marginal tax rate is $0\mathrm{.}34,$ and the annual depreciation attributable to the project is $$40$ million.

Part $1$

Attempt $\frac{1}{6}$ for $10$ pts$.$

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

Part $2$

Attempt $\frac{1}{6}$ for $10$ pts$.$

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