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A) what is the projects year O net cash flow? B) what is the projects year 1 net cash flow? c) what is the projects
A) what is the projects year O net cash flow?
Quad Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment of $3.888 million. 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 $302,400. The project requires an initial investment in net working capital of $432,000. The project is estimated to generate $3,456,000 in annual sales, with costs of $1,382,400. The tax rate is 25 percent and the required return on the project is 9 percent B) what is the projects year 1 net cash flow?
c) what is the projects year 2 net cash flow?
D) what is the projects year 3 net cash flow?
E) what is the NPV ?
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