Answer:
the annual Operating Cash Flow (OCF) for the project (new board only) is $18,433,121
Explanation:
Sales = sale of new board = $24,600 x 1,630 = $40,098,000
Expenses = variable cost + fix cost - loss of current sales = 52% x $40,098,000 + $3,225,000 - $23,000 x (1,980-1,650) = $16,485,960
EBIT = Sales - expenses - depreciation
= $40,098,000-$16,485,960-$1,095,000 = $22,517,040
OCF = EBIT - tax paid + depreciation
=$22,517,040 - 23%x$22,517,040+$1,095,000 = $18,433,121
