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The net capital cost for the something is $90,000 and is depreciated over over three years. if the sales is $50,000 units per year at
The net capital cost for the something is $90,000 and is depreciated over over three years. if the sales is $50,000 units per year at $4.00, variable costs are $2.75 and fixed costs are $12,000 per year. the tax rate is 21% and the cost of capital is 20%.
\begin{tabular}{lr} Sales ( 50,000 units at \$4.00/unit) & $200,000 \\ Variable Costs (\$2.75/unit) & 137,500 \\ \cline { 2 } Gross profit & $62,500 \\ Fixed costs (Given) & 12,000 \\ Depreciation (\$90,000/3) & \multicolumn{2}{|c|}{30,000} \\ \cline { 2 } EBIT & $20,500 \\ Taxes (21\%) & 4,305 \\ Net Income & $16,195 \end{tabular} a.) what is thr operating cash flow?
b.) whats the nvp and irr?
c.)is this worth investing in or no?
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