Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. please help me to find the operating cash flow for

please help me to find the operating cash flow for this project over five years....

60.1K

Verified Solution

Question

Finance

image

please help me to find the operating cash flow for this project over five years. and NPV of the project if the manufacturing equipment can be sold for $70,000 at the end of the five years and the cost capital for this project is 10%

NPV. Mathews Mining Company is looking at a project that has the following forecasted sales: first-year sales are 6,000 units, and sales will grow at 12% 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 63% of the current year's sales price. The manufacturing equipment to aid this project 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 $60,000 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 $70,000 at the end of the five-year project and the cost of capital for this project is 10% What is the operating cash flow for this project in year 1?. $ (Round to the nearest dollar.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Statistics
1.2K views

What is the difference between a random sample and a simple random​ sample?

Accounting
1.2K views

P23-8B (L03,6,8) (SCF—Direct and Indirect Methods) Comparative balance sheet accounts of Hamblin Company are impresented below. Additional...

Physics
1.2K views

Two concentric spherical metal shells have radii R and 2R respectively The inner shell has...

Basic Math
1.2K views

Consider the rectangle prism below, if LK=u, LH=v, LG=w. Q is in the middle of...

Basic Math
1.2K views

If we sample from a small finite population without replacement, the binomial distribution should not...

Calculus
1.2K views

y 10x 12y 12 0 The standard form of the equation is Type an equation...

Calculus
1.2K views

Determine the limit by sketching an appropriate graph 9 x2 0 x 3 3 x...

Accounting
1.2K views

Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility...

Accounting
1.2K views

Lancer, Inc. (a U.S.-based company), establishes a subsidiary in Croatia on January 1,2019. The following...

Accounting
1.2K views

Harris Company manufactures and sells a single product. A partially completed schedule of the company's...

Accounting
1.2K views

The regions with the six highest volumes of sales for a corporation last year are...

Accounting
1.2K views

Need some help solving these exercise. S4-3 S4-3 Preparing a...