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Question 10 5 points XYZ sells medical equipment and is considering the digital thermometer project, which would involve sering digital thermometers for 1 year. The

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Question 10 5 points XYZ sells medical equipment and is considering the digital thermometer project, which would involve sering digital thermometers for 1 year. The firm expects sales of digital thermometers to be 5192,000 and associated costs from batteries, electronies, plastic, etc. used to make digal thermometers to be $87,000. The firm believes that sales of analog scanners, a type of device that is currently offered by the firm, would be $41,000 less with the addition of digital thermometers, and that costs associated with analog scanners would be $38,000 less with the addition of data thermometers. Finally, XYZ believes that seling digital thermometers would increase traffic to its web site, which would increase expected sales of glucose pumps, scales, and other items by $27.000 more than it would be without the addition of digital thermometers, and increase costs of glucose pumps, scales, and other items by $14,000 more than it would be without the addition of digital thermometers. What is the operating cash flow (OC) for year1 that XYZ should use to analyre the digital thermometer project? The tax rate is 35 percent and the cost of capital is 8.61 percent. Relevant depreciation is expected to be $17.000 a. 580,700 (plus or minus $10) b. $74,200 (plus or minus 510) C 584,600 (plus or minus 510) d. $63,800 (plus or minus 510) e. None of the above is within $10 of the correct

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