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What is operating cash flow each year

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Question - A company sells Tidbits to consumers at a price of $91 per unit. The cost to produce Tidbits is $24 per unit. The company will sell 18,000 Tidbits to consumers each year. The fixed costs incurred each year will be $130,000. There is an initial investment to produce the goods of $3,700,000 which will be depreciated straight line over the 9 year life of the investment to a salvage value of $0. The opportunity cost of capital is 9% and the tax rate is 31%. What is operating cash flow each year?

Reference no: EM133148741

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