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What is the operating cash flow

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ABC, Inc is planning the purchase of new equipment that costs $128190. The project is expected to last for 14 years. Each year, the new project is expected to sell 157 units for $353 per unit. The variable costs are expected to $60 per unit and the fixed costs are expected to be $14502. The equipment will be depreciated on a straight-line basis over the 14-year life of the project. That is, the depreciation each year will be $128190/14. Assuming a tax rate of 26%, what is the operating cash flow?

Reference no: EM132117110

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