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 4.00% over the next ten years. The sales price per unit will start at $43.00 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 $2,100,000. It will be depreciated using MACRS, and has a seven-year MACRS life classification. Fixed costs will be $330,000 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%.

Year3-Year5-Year7-Year10-Year133.33%20.00%14.29%10.00%244.45%32.00%24.49%18.00%314.81%19.20%17.49%14.40%4 7.41%11.52%12.49%11.52%5 11.52%8.93%9.22%6 5.76%8.93%7.37%7 8.93%6.55%8 4.45%6.55%9 6.55%10 6.55%11 3.28%