Question
a) esfandairi enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.37 million. the fixed asset will be
a) esfandairi enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.37 million. the fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. the project is estimated to generate $1675000 in annual sales, with costs of $645000. if the tax rate is 21 percent, what is the OCF for this project? B)esfandairi enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.29 million. the fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. the project is estimated to generate $1,790,000.00 in annual sales, with costs of $700000. if the tax rate is 21 percent, and the required return on the project is 13 percent. What is the project's NPV
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