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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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