What is operating cash flow

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Reference no: EM132006254

ABC, Inc is planning the purchase of new equipment that costs $135,021. The project is expected to last for 14 years. Each year, the new project is expected to sell 152 units for $465 per unit. The variable costs are expected to $40 per unit and the fixed costs are expected to be $17,153. 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 $135,021/14. Assuming a tax rate of 34%, what is the operating cash flow?

Reference no: EM132006254

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