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In: AccountingA company sells Gizmos to consumers at a price of $117 per unit.The cost to...A company sells Gizmos to consumers at a price of $117 per unit.The cost to produce Gizmos is $27 per unit. The company will sell15,000 Gizmos to consumers each year. The fixed costs incurred eachyear will be $190,000. There is an initial investment to producethe goods of $3,400,000 which will be depreciated straight lineover the 10 year life of the investment to a salvage value of $0.The opportunity cost of capital is 6% and the tax rate is 34%. Whatis operating cash flow each year? answer 881200b) Using an operating cash flow of 881,200 each year, what isthe NPV of this project? how do you do part b?
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