Finance Test on profitability - Weebly

c. If 600,000 units per year can be sold, then the expected annual net cash flow can be derived using the formula: CF = net income + depreciation = (1 - tax rate)(Revenue - total operating costs) + depreciation = .66 x ($1,200,000 - $720,000 - $325,000) + $125,000 = $227,300 per year ................
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