NPV$.$ Miglietti Restaurants is looking at a project with the following forecasted sales: first$-$year sales quantity of $34,000,$ with an annual growth rate of $4\mathrm{.}00\%$ over the

next ten years. The sales price per unit will start at $$45\mathrm{.}00$ and will grow at $2\mathrm{.}00\%$ 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 $$2,500,000.$ It will be depreciated using MACRS, $,$ and has

a seven$-$year MACRS life classification. Fixed costs will be $$350,000$ per year. Miglietti Restaurants has a tax rate of $38\%.$ 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 $$140,000$ at the end of the ten$-$year

project and the cost of capital for this project is $8\%.$

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

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