Planning the purchase of new equipment

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ABC, Inc is planning the purchase of new equipment that costs $103,414. The project is expected to last for 9 years. Each year, the new project is expected to sell 187 units for $361 per unit. The variable costs are expected to $36 per unit and the fixed costs are expected to be $23,171. The equipment will be depreciated on a straight-line basis over the 9-year life of the project. That is, the depreciation each year will be $103,414/9. Assuming a tax rate of 36%, what is the operating cash flow?

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

Reference no: EM132009131

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