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NOTE PLEASE ANSWER ALL PARTS OF THE QUESTION P10-18 (similar to) Question Help NPV. Miglietti Restaurants is looking at a project with the following forecasted
NOTE PLEASE ANSWER ALL PARTS OF THE QUESTION
P10-18 (similar to) Question Help NPV. Miglietti Restaurants is looking at a project with the following forecasted sales: first-year sales quantity of 32,000, with an annual growth rate of 4.00% over the next ten years. The sales price per unit will start at 543.00 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 S2,200,000. 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 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 the ten-year project and the cost of capital for this project is 7%. What is the operating cash flow for this project in year 12 S (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 1 2 3 4 3-Year 33.33% 44.45% 14.81% 7.41% S-Year 20.00% 32.00% 19.20% 11.52% 11.52% 5.76% 7-Year 14.29% 24.49% 17.49% 12.49% 8.93% 8.93% 8.93% 4.45% 5 10-Year 10.00% 18.00% 14.40% 11.52% 9.22% 7.37% 6.55% 6.55% 6.55% 6.55% 3.28% 6 7 8 9 10 11Step by Step Solution
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