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9 ) Calculate the cashflow in each of the 5 years of this project for a new product given the following information. Be sure to

9) Calculate the cashflow in each of the 5 years of this project for a new product given the following information. Be sure to include the cash from the sale of the asset in year 5. Review what to do if the MACRS schedule is not fully executed, e.g. there are more years of depreciation with this schedule.
$40/ unit sales price
$6.50/ unit cost of raw materials
$25/ unit cost of direct labor to make the product
$1000/ month rent
$1200/ year insurance
$55,000 supervisor salary (already includes cost to the company)
22,000 units/year sales volume increasing at 3% each year
Initial cost for the machinery of $150,000, depreciated using MACRS 7-year recovery period
The machinery is sold in the 5thyear for $45,000.
28% tax rate

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