Question
11. Quad Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment of $4.86 million. The fixed asset will be
11.
| Quad Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment of $4.86 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will have a market value of $378,000. The project requires an initial investment in net working capital of $540,000. The project is estimated to generate $4,320,000 in annual sales, with costs of $1,728,000. The tax rate is 21 percent and the required return on the project is 16 percent. |
| What is the project's Year 0 net cash flow? |
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| What is the project's Year 1 net cash flow? |
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| What is the project's Year 2 net cash flow? |
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| What is the project's Year 3 net cash flow? |
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| What is the NPV? |
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Who Is Your Competition You Real Estate Wholesaling Questions Answers And Tools To Help Beginners Crush Their Fears And Stop Procrastinating
Authors: Nick Zalonis
1st Edition
1716097193, 978-1716097195
