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You have been given the following information for a project you are evaluating. Equipment costs are expected to be $2,000,000. Unit sales are expected to
You have been given the following information for a project you are evaluating. Equipment costs are expected to be $2,000,000. Unit sales are expected to be 50,000 per year. Price is expected to be $12 per unit and variable costs are $6 per unit. Fixed costs are expected to be $100,000 per year. Depreciation will use MACRS factors (.33, .45, .15, .07). Tax rate is 20%. Calculate the year 3 operating cash flow.
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