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Down Under Boomerang. Inc. is considering a new 3 yeat expansion project that requires an initial foued asset investment of $2.37 milion. The fixed asset

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Down Under Boomerang. Inc. is considering a new 3 yeat expansion project that requires an initial foued asset investment of $2.37 milion. The fixed asset will be depreciated straight-line to peto over its 3 year tax life. The project is estimated to generate $1,755,000 in annutal snles, with costs of $665,000. The project requires an initial investment in net working capital of 5340.000. and the fixed asset will have a market value of $35,000 at the end of the project. a. If the tax rate is 24 percent, what is the propect's Year 0 net cash flow? Year 17 Year 2? Year 3? (Do not round intermediate calculations and enter your answers in dollars, not millions of doliars. e.g. 1,234.567. A negative answer should be indicated by a minus sign.) b. If the required return is 9 petcent, what is the projects NPV? (Do not round intermediate calculations and round your answer to 2 decimal places, e.9., 32.16.)

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