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Down Under Boomerang, Inc., is considering a new 4-year expansion project that requires an initial fixed asset investment of $1,134,000. The fixed asset will be
Down Under Boomerang, Inc., is considering a new 4-year expansion project that requires an initial fixed asset investment of $1,134,000. The fixed asset will be depreciated straight-line to zero over its 4-year tax life, after which time it will be worthless. The project is estimated to generate $1,008,000 in annual sales, with costs of $403,200. The tax rate is 33 percent and the required return is 13 percent, the NPV for this project is $______.
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