Operating cash flow $($growing each year; MACRS$).$ Mathews Mining Company is looking at a project that has the following forecasted sales: first$-$year sales are $6,800$ units, and sales will grow at

$11\%$ over the next four years $($a five$-$year project$).$ The price of the product will start at $$120$ per unit and will increase each year at $5\%.$ The production costs are expected to be $59\%$ of the

current year's sales price. The manufacturing equipment to aid this project will have a total cost $($including installation$)$ of $$1,200,000.$ 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 rate of $30\%.$ What is the operating cash flow for this project over these five years?

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

$($Round to the nearest dollar.$)$

Data table

MACRS Fixed Annual Expense Percentages by Recovery Class

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