Question: What is the operating cash and Net present value Should they accept or reject? A company will sell Thingamabobs to consumers at a price of
What is the operating cash and Net present value
Should they accept or reject?
A company will sell Thingamabobs to consumers at a price of $103 per unit. The variable cost to produce Thingamabobs is $29 per unit. The company expects to sell 17,000 Thingamabobs to consumers each year. The fixed costs incurred each year will be $160,000. There is an initial investment to produce the goods of $2,600,000 which will be depreciated straight line over the 6 year life of the investment to a salvage value of $0. The opportunity cost of capital is 7% and the tax rate is 29%. What is operating cash flow each year? Number Click "Verify" to proceed to the next part of the question. Section Attempt 1 of 1 Verify
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