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25.) Trick or Treat Stores is considering a new 3-year expansion project that requires an initial fixed asset investment of $6,048,000. The fixed asset

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25.) Trick or Treat Stores is considering a new 3-year expansion project that requires an initial fixed asset investment of $6,048,000. 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 $470,400. The project requires an initial investment in net working capital of $672,000. The project is estimated to generate $5,376,000 in annual store sales, with costs of $2,150,400. The tax rate is 31% and the required return on the project is 10%. What is the project's Year 1 total cash flow? a. $2,565,562 b. $2,708,093 C. $2,850,624 d. $2,993,155 $3,135,686

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