Operating cash flow.  Huffman Systems has forecasted sales for its new home alarm systems to be 65,000 units per year at ​$40.00 per unit. The cost to produce each unit is expected to be about 40​% of the sales price. The new product will have an additional ​$480,000 of fixed costs each​ year, and the manufacturing equipment will have an initial cost of $3,100,000 and will be depreciated over eight years​ (straight line). The company tax rate is 38​%. What is the annual operating cash flow for the alarm systems if the projected sales and price per unit are constant over the next eight​ years?   What is the annual operating cash flow for the alarm​ systems?   (Round to the nearest​ dollar.)

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Operating cash flow.  Huffman Systems has forecasted sales for its new home alarm systems to be
65,000
units per year at
​$40.00
per unit. The cost to produce each unit is expected to be about
40​%
of the sales price. The new product will have an additional
​$480,000
of fixed costs each​ year, and the manufacturing equipment will have an initial cost of
$3,100,000
and will be depreciated over eight years​ (straight line). The company tax rate is
38​%.
What is the annual operating cash flow for the alarm systems if the projected sales and price per unit are constant over the next eight​ years?
 
What is the annual operating cash flow for the alarm​ systems?  
(Round to the nearest​ dollar.)
 
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