Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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%

image text in transcribed
image text in transcribed
image text in transcribed
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 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 (inclu 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 Miglietti Restaurants if the manufacturing equipment can be sold for $130,000 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 19 (Round to the nearest dollar) Enter your answer in the answer box and then click Check Answer Clear All 11 parts remaining casted 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 arrent year's sales price. The manufacturing equipment to aid this project will have a total cost (including installation) of $2,200,000. It will be depreciated using MACRS, De $360,000 per year. Miglietti Restaurants has a tax rate of 35%. What is the operating cash flow for this project over these ten years? Find the NPV of the project for 30,000 at the end of the ten-year project and the cost of capital for this project is 8% i Data Table MACRS Fixed Annual Expense Percentages by Recovery Class Click on this icon to download the data from this table 3-Year 33.33% 44.45% 14.81% 7.41% Year 1 2 3 4 5 6 7 8 9 10 11 5-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% 10-Year 10.00% 18.00% 14.40% 11.52% 9.22% 7.37% 6.55% 6.55% 6.55% 6.55% 3.28%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Crime And Punishment In The Future Internet

Authors: Sanja Milivojevic

1st Edition

036746800X, 978-0367468002

More Books

Students also viewed these Finance questions