(Solution Document) ABC, Inc is planning the purchase of new equipment that costs $101,534. The proj


ABC, Inc is planning the purchase of new equipment that costs $101,534. The project is expected to last for 14 years. Each year, the new project is expected to sell 157 units for $272 per unit. The variable costs are expected to $99 per unit and the fixed costs are expected to be $19,172. 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 $101,534/14. Assuming a tax rate of 34%, what is the operating cash flow?

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

 







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