DO NOT HARDCODE VALUES!!

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.9 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $2,190,000 in annual sales, with costs of $815,000. The tax rate is 21 percent. If the required return is 12 percent, what is the project's NPV? Complete the following analysis. Do not hard code values in your calculations. Sales Costs Depreciation EBT Taxes Net income OCF NPV $2,190,000 815,000