using the operating cash flow information in the problem(NPV),determine wheter doyle precision measurement tools should be add the GPS system to its sets of products. The initial investment is 1,440,000 and is depreciated to six years (straight-line) and will be sold at the end of five years for 380,000.The cost capital is 10% and the tax rate is still 35%.

DOYLE PRECISION MEASUREMENT TOOLS Operating Cash Flow Year Ending December 31, (In Philippine Peso) 864,000 12 Revenue (48,000 x 18) 13 Production Costs (37% of Revenue) (319,680)| 14 Gross Profit 544,320 15 Annual Fixed Costs (180,000) 16 Depreciation (240,000) 124,320 17 EBIT (43,512) 18 Income Tax 80,808 19 Net Income 240,000 20 Add back Depreciation 320,808 21 OPERATING CASH FLOW