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Find operating cash flow for year 1,2,3,4 and 5 Operating cash flow (growing each year; MACRS). Mathews Mining Company is looking at a project that

Find operating cash flow for year 1,2,3,4 and 5
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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 fiveyear 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? MACRS Fixed Annual Expense Percentages by Recovery Class Click on this icon ax rate of 30%

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