Huffman Systems has forecasted sales for its new home alarm systems to be 64000 units per year at $38.50 per unit. The cost to produce each
unit is expected to be about 42% of the sales price. The new product will have an additional $480000 fixed costs each year and the manufacturing equipment
will have an initial cost of $2410000 and will be depreciated over eight years (straight-line). The company tax rate is 40%. What is the annual operating
cash flow for the alarm systems if the projected sales and price per unit are constant over the next eight years? Should Huffman Systems add the new home alarm
system to its set of products? The manufacturing equipment will be sold off a the end of the eight years for $210000 and the cost of capital for this project
is 12%.