Topic: What is the annual operating cash flow of the new GPS System? Should the company add the GPS system to its set of products?

NW Grady Precision Measurement Tools has forecasted the following sales and costs for a new GPS system: annual sales of 46,000 units at $16 a unit, production costs at 39% of sales priceI annual xed costs for production at $200,000. The company tax rate is 30%. What is the annual operating cash flow of the new GPS system? Should Grady Precision Measurement Tools add the GPS system to its set of products? The initial investment is $1,440,000 for manufacturing equipment, which will be depreciated over six years (straight line) and will be sold at the end of ve years for $380,000. The cost of capth is 11%. What is the annual operating cash ow of the new GPS system