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Company FIN3610-ETRA just launched a new project. The required return is 11% The project will last for 3 years. Every year, the revenues generated from
Company FIN3610-ETRA just launched a new project. The required return is 11% The project will last for 3 years. Every year, the revenues generated from the project will be $1,785,000, and the costs from the project will be $680,000. The initial Investment on this project is equal to $2.31 milion, which will follow the three year MACRS depreciation schedule (MACRS schedule). The salvage value will be $405,000 In addition, the project requires an initial $400,000 investment in net working capital If the tax rate is 25%, what is the NPV of this project? (Do not round Intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to two decimal places, e... 1,234,567.89.) NPV
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