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Question: What is the operating cash flow for this project in year 1? year 2? year 3? year 4? year 5? Operating cash ow {growing

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Question: What is the operating cash flow for this project in year 1? year 2? year 3? year 4? year 5?

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Operating cash ow {growing each year; RACES). Mathews Mining Companyr is looking at a project that has the following forecasted sales: rstyear sales are 1000 unitsI and sales will grow at 15% over the next four years (a veyear project}. The price of the product will start at $120 per unit and will increase each year at Mia. 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 $1,200,000. Itwill be depreciated using MACRS1 a , and has a seven-year MACRS life classication. leed mats will be $50,000 per year. Mathews Mining has a tax rate of 35%. What is the operating cash ow for this project over these ve years

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