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A company will sell Gizmos to consumers at a price of $102 per unit. The variable...

A company will sell Gizmos to consumers at a price of $102 per unit. The variable cost to produce Gizmos is $44 per unit. The company expects to sell 15,000 Gizmos to consumers each year. The fixed costs incurred each year will be $110,000. There is an initial investment to produce the goods of $2,500,000 which will be depreciated straight line over the 16 year life of the investment to a salvage value of $0. The opportunity cost of capital is 13% and the tax rate is 36%.

What is operating cash flow each year?  

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Answer #1

Cakulation of operating cash flow each year! Sales 109 x 15000 15 30000 les vavable 44 x 15000 → (66.000) quantity CUC X (110

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