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TISA Corp. is looking for a project that has annual forecasted sales of $1,000,000. The variable production costs are 70% of sales. The project lasts

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TISA Corp. is looking for a project that has annual forecasted sales of $1,000,000. The variable production costs are 70% of sales. The project lasts 10 years. The equipment needed for the project costs $500,000, will be depreciated using MACRS method and has a 5-year MACRS classification (table below). There are no other costs. The tax rate is 30% Year 3-Year 5-Year 7-Year 10-Year OOO VOUAWNI 33.33% 20.00% 14.29% 10.00% 44.45% 32.00% 24.49% 18.00% 14.81% 19.20% 17.49% 14.40% 7.41% 11.52% 12.49% 11.52% 11.52% 8.93% 9.22% 5.76% 8.93% 7.37% 8.93% 6.55% 4.45% 6.55% 6.56% 10 6.55% 11 3.28% 12 The operating cash flow for year 7 is $320,000 $187,075 $210,000 $280,000 $175,000

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