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

3.00%

over the next ten years. The sales price per unit will start at

$40

and will grow at

4.50%

per year. The production costs are expected to be

57%

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?

MACRS Fixed Annual Expense Percentages by Recovery Class

Year	3-Year	5-Year	7-Year	10-Year
1	33.33%	20.00%	14.29%	10.00%
2	44.45%	32.00%	24.49%	18.00%
3	14.81%	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%

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?

(Round to the nearest dollar.)

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?

(Round to the nearest dollar.)

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?

(Round to the nearest dollar.)

What is the operating cash flow for this project in year 10?

(Round to the nearest dollar.)