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A firm is considering a new seven - year expansion project with an initial fixed asset investment of $ 4 . 5 million. The fixed
A firm is considering a new sevenyear expansion project with an initial fixed asset investment of $ million. The fixed asset will be depreciated straightline to zero over its sevenyear tax life, after which time it will be worthless. No bonus depreciation will be taken. The project is estimated to generate $ in annual sales, with costs of $ The tax rate is percent and the required return is percent. What is the net present value of this project?
Instruction: Enter your response rounded to two decimal places.
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