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What is the operating cash flow over the next 10 years? please show all 10 Operating cash flow (growing each year; MACRS). Miglietti Restaurants is
What is the operating cash flow over the next 10 years? please show all 10
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 2.00% over the next ten years. The sales price per unit will start at $42 and will grow at 2.00% 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 $2,000,000. It will be depreciated using MACRS, and has a seven-year MACRS life classification. Fixed costs will be $350,000 per year. Miglietti Restaurants has a tax rate of 30%. What is the operating cash flow for this project over these ten years? C.... What is the operating cash flow for this project in year 1? $(Round to the nearest dollar.)Step by Step Solution
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