Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Operating cash flow ( growing each year; MACRS ) . Miglietti Restaurants is looking at a project with the following forecasted sales: first - year

Operating cash flow (growing each year; MACRS). 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 $42 and will grow at 2.50% per year. The production costs are expected to be 59% 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 $310,000 per year. Miglietti Restaurants has a tax rate of 30%. What is the operating cash flow for this project over these ten years?
What is the operating cash flow for this project in year 1?
$ (Round to the nearest dollar.)
What is the operating cash flow for this project in year 2?
(Round to the nearest dollar.)
What is the operating cash flow for this project in year 3?
What is the operating cash flow for this project in year 4?
$ (Round to the nearest dollar.)
What is the operating cash flow for this project in year 5?
(Round to the nearest dollar.)
What is the operating cash flow for this project in year 6?
What is the operating cash flow for this project in year 7?
(Round to the nearest dollar.)
What is the operating cash flow for this project in year 8?
(Round to the nearest dollar.)
What is the operating cash flow for this project in year 9?
What is the operating cash flow for this project in year 10?
(Round to the nearest dollar.)
table
\table[[Year,3-Year,5-Year,7-Year,10-Year],[1,33.33%,20.00%,14.29%,10.00%
image text in transcribed

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

Business Analysis And Valuation Using Financial Statements Text And Cases

Authors: Krishna G. Palepu, Paul M. Healy, Victor L Bernard

3rd Edition

0324118945, 9780324118940

More Books

Students also viewed these Finance questions

Question

What are the benefits of studying psychology? (p. 17)

Answered: 1 week ago