huffman systems has forecasted sales for its new home alarm systems to be 63,000 units per year at $38.50 per unit. the cost to produce each unit is expected to be 42% of the sales price. the new product will have an additional $494,000 fixed costs each year, and the manufacturing equipment will have an initial cost of $2,400,000 and will be depreciated over eight years on a straight line basis. the company has a tax rate of 40%. what is the annual operating cash flow for the alarm systems if the projected sales and price per unit are constant of the next eight years?
