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1) What is the operating cash flow for this project in year 3? 2) What is the operating cash flow for this project in year
1) What is the operating cash flow for this project in year 3?
2) What is the operating cash flow for this project in year 4?
Operating cash flow (growing each year; MACRS). Mathews Mining Company is looking at a project that has the following forecasted sales: first-year sales are 6,800 units, and sales will grow at 15% over the next four years (a five-year project). The price of the product will start at $124 per unit and will increase each year at 5%. The production costs are expected to be 62% of the current year's sales price. The manufacturing equipment to aid this project will have a total cost (including installation) of $1,400,000. It will be depreciated using MACRS,, and has a seven-year MACRS life classification. Fixed costs will be $50,000 per year. Mathews Mining has a tax rate of 30%. What is the operating cash flow for this project over these five years? What is the operating cash flow for this project in year 1? $249309 (Round to the nearest dollar.) What is the operating cash flow for this project in year 2? $ 338,689 (Round to the nearest dollar.) What is the operating cash flow for this project in year 3? (Round to the nearest dollar)Step by Step Solution
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