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Down Under Boomerang, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $2,808,000. The fixed asset will be

Down Under Boomerang, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $2,808,000. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will be worthless. The project is estimated to generate $2,496,000 in annual sales, with costs of $998,400. The tax rate is 34 percent and the required return is 18 percent, the NPV for this project is $

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