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c-10 q7 need help with all 11 parts NPV.Miglietti Restaurants is looking at a project with the following forecasted sales: first-year sales quantity of 36,000,

c-10 q7 need help with all 11 parts

NPV.Miglietti Restaurants is looking at a project with the following forecasted sales: first-year sales quantity of 36,000, with an annual growth rate of 4.00% over the next ten years. The sales price per unit will start at $44.00 and will grow at 2.00% per year. The production costs are expected to be 55% of the current year's sales price. The manufacturing equipment to aid this project will have a total cost (including installation) of $2,400,000.It will be depreciated usingMACRS, LOADING..., and has a seven-year MACRS life classification. Fixed costs will be $350,000 per year. Miglietti Restaurants has a tax rate of 40%. What is the operating cash flow for this project over these ten years? Find the NPV of the project for Miglietti Restaurants if the manufacturing equipment can be sold for $160,000 at the end of theten-year project and the cost of capital for this project is 7%.

MACRS Fixed Annual Expense Percentages by Recovery Class

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Year

3-Year

5-Year

7-Year

10-Year

1

33.33%

20.00%

14.29%

10.00%

2

44.45%

32.00%

24.49%

18.00%

3

14.81%

19.20%

17.49%

14.40%

4

7.41%

11.52%

12.49%

11.52%

5

11.52%

8.93%

9.22%

6

5.76%

8.93%

7.37%

7

8.93%

6.55%

8

4.45%

6.55%

9

6.55%

10

6.55%

11

3.28%

What is the operating cash flow for this project in year 1?

(Round to the nearest dollar.)

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