What is annual operating cash flow of new gps? system

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Grady Precision Measurement Tools has forecasted the following sales and costs for a new GPS? system: annual sales of 46,000 units at 18 a? unit, production costs at 37?% of sales? price, annual fixed costs for production at $200,000. The company tax rate is 35?%. What is the annual operating cash flow of the new GPS? system? Should Grady Precision Measurement Tools add the GPS system to its set of? products? The initial investment is ?$1,410,000 for manufacturing ?equipment, which will be depreciated over six years? (straight line) and will be sold at the end of five years for $380,000.The cost of capital is 11?%

What is the annual operating cash flow of the new GPS system? (Round to the nearest dollar.)_______________

What is the after-tax cash flow of the GPS system at disposal? (Round to the nearest dollar.)__________________

What is the NPV of the new GPS system? (Round to the nearest dollar.)_____________

Reference no: EM131338834

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