MACRS Fixed Annual Expense Percentages by RecoveryClass?????????

??Year	?3-Year	?5-Year	?7-Year	?10-Year
????1	?33.33%	?20.00%	?14.29%	?10.00%
????2	?44.45%	?32.00%	?24.49%	?18.00%
????3	?14.81%	?19.20%	?17.49%	?14.40%
????4	? 7.41%	?11.52%	?12.49%	?11.52%
????5		?11.52%	?8.93%	?9.22%
????6		? 5.76%	?8.93%	?7.37%
????7			?8.93%	?6.55%
????8			?4.45%	?6.55%
????9				?6.55%
??10				?6.55%
??11				?3.28%

NPV. Mathews Mining Company is looking at aproject that has the following forecasted? sales: ? first-yearsales are 7,000 ?units, and sales will grow at 12?% over the nextfour years? (a five-year? project). The price of the product willstart at $126.00 per unit and will increase each year at 66?%. Theproduction costs are expected to be 63?% of the current? year'ssales price. The manufacturing equipment to aid this project willhave a total cost? (including installation) of $1,450,000. It willbe depreciated using MACRS, and has a? seven-year MACRS lifeclassification. Fixed costs will be ?$55,000 per year. MathewsMining has a tax rate of 30?%. What is the operating cash flow forthis project over these five? years? Find the NPV of the projectfor Mathews Mining if the manufacturing equipment can be sold for?$80,000 at the end of the? five-year project and the cost ofcapital for this project is 14?%.

What is the operating cash flow for this project in year? 1??$_______ (Round to the nearest? dollar.)

What is the operating cash flow for this project in year? 2??$________ ?(Round to the nearest? dollar.)

What is the operating cash flow for this project in year? 3??$_________ (Round to the nearest? dollar.)

What is the operating cash flow for this project in year? 4??$__________ (Round to the nearest? dollar.)

What is the operating cash flow for this project in year? 5??$__________ (Round to the nearest? dollar.)

What is the? after-tax cash flow of the project at? disposal??$__________ ?(Round to the nearest? dollar.)

What is the NPV of the? project? ?$_________?(Round to thenearest? dollar.)