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The following information relates to an investment opportunity: Initial Cost = $5,000,000 (all depreciable using straight-line) Economic Life = 5 years Units sold/year = 100,000

The following information relates to an investment opportunity:

  • Initial Cost = $5,000,000 (all depreciable using straight-line)
  • Economic Life = 5 years
  • Units sold/year = 100,000
  • Price per unit = $50/unit
  • Variable Cost = $30/unit
  • Fixed Cost/year (not including depreciation) = $500,000
  • Tax Rate = 30%
  • Required Return = 12%

Calculate the annual operating cash flow for years 15 of this project. Show your work. Use the table function to help format your work.

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