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A company sells Widgets to consumers at a price of $112 per unit. The cost...

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Accounting

A company sells Widgets to consumers at a price of $112 per unit. The cost to produce Widgets is $49 per unit. The company will sell 19,000 Widgets to consumers each year. The fixed costs incurred each year will be $180,000. There is an initial investment to produce the goods of $2,200,000 which will be depreciated straight line over the 15 year life of the investment to a salvage value of $0. The opportunity cost of capital is 9% and the tax rate is 35%.
What is operating cash flow each year?
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