Transcribed Image Text
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.)