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NPV.Miglietti Restaurants is looking at a project with the following forecasted sales: first-year sales quantity of 31,000, with an annual growth rate of 4.00% over

NPV.Miglietti Restaurants is looking at a project with the following forecasted sales: first-year sales quantity of 31,000, with an annual growth rate of 4.00% over the next ten years. The sales price per unit will start at $44.00 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 $2,300,000. It will be depreciated using MACRS, and has a seven-year MACRS life classification. Fixed costs will be $360,000per 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 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?

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Data table MACRS Fixed Annual Expense Percentages by Recovery Class Click on this icon 0 fo downlosed the data from this fable What in the oper afry cash fire for this proinct in year to? (Fieund 1 at ten ne wit kollar) Data table 12AC93 Fimed Anesal Fxpense Peecentages by Recoeeryclas

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