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d and e Halloween Costumes Unlimited is considering a new 3-year store expansion project that requires an initial fixed asset investment of $1.7 million. The
d and e
Halloween Costumes Unlimited is considering a new 3-year store expansion project that requires an initial fixed asset investment of $1.7 million. The fixed asset falls into the 3 year MACRS class (MACRS Table) and will have a market value of $130,200 after 3 years. The project requires an initial investment in net working capital of $186,000. The project is estimated to generate $1,488,000 in annual sales, with costs of $595,200. The tax rate is 34 percent and the required return on the project is 9 percent. (Do not round your intermediate calculations.) Required: (a) What is the proiect's year 0 net cash flow? (b)What is the proiect's year 1 net cash flow? (c)What is the proiect's year 2 net cash flow? (d) What is the proiect's year 3 net cash flow? (e)What is the NPV? (bllwhat ia itha nraiant's year 1 net cash flow? (Click to select) 890,650 820,990 s year 2 net cash flow? 940,131 1,039,092 's year 3 net cash flow? (b) What is the proiect's year 1 net cash flow? (c) What is the proiect's year 2 net cash flow? (d) What is the project's year 3 net cash flow Step by Step Solution
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