What is the annual ocf for the project

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Question - Calculating Project OCF. Molonglo Music Company is considering the sale of a new sound board used in recording studios. The new board would sell for $33 000 and the company expects to sell 1800 per year. Molonglo currently sells 2310 of its existing model per year. If the new model is introduced, sales of the existing model will fall to 1900 units per year. The old board retails for $27,870. Variable costs are 57% of sales, depreciation on the equipment to produce the new board will be $2,468 750 per year, and fixed costs are $3,000,000 per year. If the tax rate is 30%, what is the annual OCF for the project?

Reference no: EM133157440

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