Annual operating cash flow of the new GPS system

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Reference no: EM131553609

Grady Precision Measurement Tools has forecasted the following sales and costs for a new GPS system: annual sales of 40,000 units at $25 aunit, production costs at 37% of sales price, annual fixed costs for production at $130,000, and straight-line depreciation expense of $ 200,000 per year. The company tax rate is 35%. What is the annual operating cash flow of the new GPS system?

Reference no: EM131553609

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