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What is operating cash flow each year

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Question - A company sells Gizmos to consumers at a price of $97 per unit. The costs to produce Gizmos is $48 per unit. The company will sell 20,000 Gizmos to consumers each year. The fixed costs incurred each year will be $250,000. There is an initial investment to produce the goods of $3,700,000 which will be depreciated straight line over 14 year life of the investment to a salvage value of $0. The opportunity cost of capital is 14% and the tax rate is 32%. What is operating cash flow each year?

Reference no: EM132756273

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