Compute what is operating cash flow each year

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Problem1 : A company will sell Thingamajigs to consumers at a price of $87 per unit. The variable cost to produce Thingamajigs is $27 per unit. The company expects to sell 13,000 Thingamajigs to consumers each year. The fixed costs incurred each year will be $240,000. There is an initial investment to produce the goods of $4,000,000 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 6% and the tax rate is 33%. What is operating cash flow each year?

Reference no: EM132740614

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Compute what is operating cash flow each year : A company will sell Thingamajigs to consumers, The opportunity cost of capital is 6% and the tax rate is 33%. What is operating cash flow each year?

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