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Need years 1-5. What is the after-tax cash flow of the project at disposal? What is the NPV of the project? NPV. Mathews Mining Company
Need years 1-5.
What is the after-tax cash flow of the project at disposal?
What is the NPV of the project?
NPV. Mathews Mining Company is looking at a project that has the following forecasted sales: first-year sales are 7,000 units, and sales will grow at 12% over the next four years (a five-year project). The price of the product will start at $129.00 per unit and will increase each year at 6%. The production costs are expected to be 63% of the current year's sales price. The manufacturing equipment to aid this project will have a total cost (including installation) of $1,450,000. It will be depreciated using MACRS, E, and has a seven-year MACRS life classification. Fixed costs will be $60,000 per year. Mathews Mining has a tax rate of 30%. What is the operating cash flow for this project over these five years? Find the NPV of the project for Mathews Mining if the manufacturing equipment can be sold for $85,000 at the end of the five-year project and the cost of capital for this project is 13%. What is the operating cash flow for this project in year 1? $(Round to the nearest dollar.) Data Table MACRS Fixed Annual Expense Percentages by Recovery Class Click on this icon to download the data from this table Year 7-Year 1 2 3 4 5 6 3-Year 33.33% 44.45% 14.81% 7.41% 5-Year 20.00% 32.00% 19.20% 11.52% 11.52% 5.76% 14.29% 24.49% 17.49% 12.49% 8.93% 8.93% 8.93% 4.45% 10-Year 10.00% 18.00% 14.40% 11.52% 9.22% 7.37% 6.55% 6.55% 6.55% 6.55% 3.28% 8 9 10 11 Print DoneStep by Step Solution
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