Question: Operating cash flow (growing each year; MACRS). Mathews Mining Company is looking at a project that has the following forecasted sales: rstyear sales are 6,300

Operating cash flow (growing each year; MACRS).
Operating cash flow (growing each year; MACRS). Mathews Mining Company is looking at a project that has the following forecasted sales: rstyear sales are 6,300 units, and sales will grow at 14% over the next four years (a five-year project). The price of the product will start at $123 per unit and will increase each year at 9%. The production costs are expected to be 61% 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, Q , and has a seven-year MACRS life classication. Fixed costs will be $52,000 per year. Mathews Mining has a tax rate of 30%. What is the operating cash flow for this project over these ve years? What is the operating cash ow for this project in year 1? $ (Round to the nearest dollar.)

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