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Your company has decided to produce a new line of television/electronic media player. You estimate that revenue from sales of this new product will
Your company has decided to produce a new line of television/electronic media player. You estimate that revenue from sales of this new product will equal $38,250,000. The plant and equipment (new fixed assets) needed to manufacture this product costs $22,400,000 and will be depreciated straight-line to zero over the seven-year project. Additional manufacturing costs to produce the media players would total $16,980,000 each year. The tax rate is 10%. Sketch (explain) a simplified income statement based on this information and calculate the firm's operating cash flow.
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