Cash flows from operations


ElectricEye Technologies is considering introducing a new line of optic devices. The expected annual sales number of the devices is 10,000 per year; the price is $5,000 per device, and the ariable costs of production amount to $2000 per unit. The fixed costs (including depreciation) are $10,000 million per year. Depreciation costs are $5 million per year. The marginal tax rate is 40%. What is the incremental annual cash flow from operations for the new line?

25 million

20 million

15 million

12 million

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Finance Basics: Cash flows from operations
Reference No:- TGS053828

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