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1. Gamble, Inc. is considering a very risky new three-year expansion project that requires an initial fixed asset investment of $906,000. The fixed asset will

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1. Gamble, Inc. is considering a very risky new three-year expansion project that requires an initial fixed asset investment of $906,000. The fixed asset will be depreciated straight-line to zero over its three-year life, after which time it will be worthless. The project is estimated to generate $999,000 in annual sales, with costs of $555,000. The tax rate is 21% and the required return for this project is 18%. 2uestion 1a: Using the tax shield approach what is the OCF for this project? Question 1b : What is the NPV? Should the project be accepted

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