1) What is the operating cash flow for this project in year 1? 2) What...

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1) What is the operating cash flow for this project in year 1?

2) What is the operating cash flow for this project in year 2?

3) What is the operating cash flow for this project in year 3?

4) What is the operating cash flow for this project in year 4?

5) What is the operating cash flow for this project in year 5?

MPV. Mathews Mining Company is looking at a project that has he following forecasted sales first-year sales are 6,400 units, and sales will gro at 14% over the next four years a e-year project The price of the product will start at $121.00 per unit and will increase each year at 6%. The production costs are expected to be 59% of the cu ent year's sale price. The manufacturing equipment to aid this pro ect will have a total cost including installation of $1,350,000. It will be depreciated using MACRS and has a seven-year MACRS life classification. Fixed costs will be $50,000 per year. Mathews Mining has a tax rte of 30%, what is the operating cash flow or this pro ect over these five years? Find the NPV of the project for Mathews Mining if the manufacturing equipment can be sold for S85 000 at the end of the five-year project and the cost of capital for this project is 10%

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