Abc inc is planning the purchase of new equipment that


ABC, Inc is planning the purchase of new equipment that costs $149,331. The project is expected to last for 14 years. Each year, the new project is expected to sell 103 units for $480 per unit. The variable costs are expected to $50 per unit and the fixed costs are expected to be $23,038. 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 $149,331/14. Assuming a tax rate of 23%, what is the operating cash flow?

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Financial Management: Abc inc is planning the purchase of new equipment that
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