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The question is in the attached file. Matthews Mining company - npv NPV.Mathews Mining Company is looking at a project that has the following forecasted
The question is in the attached file. Matthews Mining company - npv
NPV.Mathews Mining Company is looking at a project that has the following forecasted sales: firstyear sales are 6,800 units, and sales will grow at 15% over the next four years (a five-year project). The price of the product will start at $124.00 per unit and will increase each year at 5%. 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 $1,400,000. It will be depreciated using MACRS, LOADING... , and has a seven-year MACRS life classification. Fixed costs will be $50,000 per year. Mathews Mining has a tax rate of 30%. What is the operating cash flow for this project over these five years? Find the NPV of the project for Mathews Mining if the manufacturing equipment can be sold for $80,000 at the end of the five-year project and the cost of capital for this project is 12%. What is the operating cash flow for this project in year 1? $ 00 (Round to the nearest dollar.) What is the operating cash flow for this project in year 2? $ 00 (Round to the nearest dollar.) What is the operating cash flow for this project in year 3? $ 00 (Round to the nearest dollar.) What is the operating cash flow for this project in year 4? $ 00 (Round to the nearest dollar.) What is the operating cash flow for this project in year 5? $ 00 (Round to the nearest dollar.)Step by Step Solution
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