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A firm is considering a new three-year expansion project that requires an initial asset investment of $2.7 million. The fixed asset falls into the three-year

A firm is considering a new three-year expansion project that requires an initial asset investment of $2.7 million. The fixed asset falls into the three-year MACRS class. The project is estimated to generate $2,080,000 in annual sales, with costs of $775,000. The project requires an initial investment in net working capital of $300,000 and the fixed asset will have a market value of $210,000 at the end of the project. If the tax rate is 35 percent and the required rate of return is 12 percent, what is the projects NPV?

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I calculated all of the OCF's for each year but have no clue how to find the NPV now. Will you explain how to get NPV?

Year MACRS 33.33% 44.45% 14.81% 7.41%

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