Question: PLEASE find Operation Cash Flow for Years 2, 3, 4, 5. This is my last problem due tonight, please help! Operating cash flow (growing each

 PLEASE find Operation Cash Flow for Years 2, 3, 4, 5.This is my last problem due tonight, please help! Operating cash flow

PLEASE find Operation Cash Flow for Years 2, 3, 4, 5. This is my last problem due tonight, please help!

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 6,300 units, and sales will grow at 13% over the next four years (a five-year project). The price of the product will start at $124 per unit and will increase each year at 6%. 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 $1,300,000. It will be depreciated using MACRS, , and has a seven-year MACRS life classification. Fixed costs will be $49,000 per year. Mathews Mining has a tax rate of 28%. 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.) What is the operating cash flow for this project in year 2? $ (Round to the nearest dollar.) MACRS Fixed Annual Expense Percentages by Recovery Class Click on this icon pr to download the data from this table

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!