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Operating cash flow (growing each year; MACRS). Mathews Mining Company is looking at a project that has the following forecasted sales: first-year sales are 6,400
Operating cash flow (growing each year; MACRS). Mathews Mining Company is looking at a project that has the following forecasted sales: first-year sales are 6,400 units, and sales will grow at 14% over the next four years (a five-year project). The price of the product will start at $121 per unit and will increase each year at 8%. The production costs are expected to be 62% of the current year's sales price. The manufacturing equipment to aid this project will have a total cost (including installation) of $1,300,000. It will be depreciated using MACRS, , and has a seven-year MACRS life classification. Fixed costs will be $48,000 per year. Mathews Mining has a tax rate of 28%. What is the operating cash flow for this project over these five years? What is the operating cash flow for this project in year 1 ? $229,331 (Round to the nearest dollar.) Data table What is the operating cash flow for this project in year 2? \& (Round to the nearest dollar.) MACRS Fixed Annual Expense Percentages by Recovery Class Click on this icon be download the data from this table
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