Evaluate operating cash flow

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Question: ABC, Inc is planning the purchase of new equipment that costs $128,419. The project is expected to last for 13 years. Each year, the new project is expected to sell 129 units for $364 per unit. The variable costs are expected to $69 per unit and the fixed costs are expected to be $18,583. The equipment will be depreciated on a straight-line basis over the 13-year life of the project. That is, the depreciation each year will be $128,419/13. Assuming a tax rate of 34%, what is the operating cash flow?

Reference no: EM131931610

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