Mathews Mining Company is looking at a project that has the following forecasted? sales: ? first-year sales are 7,000 units, and sales will grow at 12% over the next four years? (a five-year? project). The price of the product will start at $ 121.00 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 $1,300,000. It will be depreciated using? MACRS, and has a?seven-year MACRS life classification. Fixed costs will be $55,000 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 14%.

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

What is the operating cash flow for this project in year? 2?

What is the operating cash flow for this project in year? 3?

What is the operating cash flow for this project in year? 4?

What is the operating cash flow for this project in year? 5?

What is the book value of the manufacturing equipment after five? years? _____________ Round to nearest dollar

What is the gain? (or loss) for the sales of the manufacturing equipment after 5? years? _____________ Round to nearest dollar

What is the? after-tax cash flow of the manufacturing equipment at? disposal? _____________ Round to nearest dollar

What is the NPV of the? project? _____________ Round to nearest dollar