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Data Table MACRS Fixed Annual Expense Percentages by Recovery Class 10-Year 10.00% 18.00% 14.40% 11.52% 9.22% 7 37% 6.55% 6.55% 6.55% 6.55% 3.28% 5-Year 20.00%

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Data Table MACRS Fixed Annual Expense Percentages by Recovery Class 10-Year 10.00% 18.00% 14.40% 11.52% 9.22% 7 37% 6.55% 6.55% 6.55% 6.55% 3.28% 5-Year 20.00% 32.00% 19.20% 11 .52% 11 .52% 576% 7-Year 14.29% 24.49% 17.49% 12.49% 8.93% 8.93% 8.93% 4.45% 3-Year 33.33% 44.45% 14.81% 7.41% Year 4 6 10 PrintDone Homework: Chapter 10 Homework Save Score: 0 of 1 pt 7 of 8(6 complete) HW Score: 68.75%, 5.5 of 8 pts P10-18 (similar to) Question Help sales NPV Miglietti Restaurants is looking at a project with the following forecasted sales: first-year sales quantity of 35,000, with an annual growth rate of 4.00% over the next ten years. The sales price per unit will start at $43.00 and will grow at 2.00% per year. The production costs are expected to be55% 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 using MACRS, and has a seven-year MACRS life classification. Fixed costs will be $360,000 per year. Miglietti Restaurants has a tax rate of 35%. What is the operating cash flow or this project over these ten years? Find the NPV of the project for Miglietti Restaurants if the manufacturing equipm ent can be sold for $130,000 at the end of the ten-year project and the cost of capital for this project is 8%. itwilbe depreciated using MA anc has a senor vaie prce The mandacurng ui RS and has a seven-year MA R eproject for Miglietti Restaurants if the can soid for $10,00t What is the operating cash flow for this project in year 1? (Round to the nearest dollar)

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