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15. A company is considering a three-year expansion project. It requires an initial fixed asset investment of $4,200,000. It will be depreciated straight-line to zero
15. A company is considering a three-year expansion project. It requires an initial fixed asset investment of $4,200,000. It will be depreciated straight-line to zero over its three-year tax life. Annual sales of the project are estimated to be $2,800,000, costs of $800,000. Tax rate is 30% and required return (discount rate) is 12%. What's the project's NPV? (rounded) a. 2,758,091.24 b. 837,436.22 c. 171,332.9 d. 603,642.54 e. Other (say the amount)
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