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Down Under Boomerang, Inc., is considering a new three - year expansion project that requires an initial fixed asset investment of $ 2 . 7
Down Under Boomerang, Inc., is considering a new threeyear expansion project that requires an initial fixed asset investment of $ million. The fixed asset will be depreciated straightline to zero over its threeyear tax life, after which time it will be worthless. The project is estimated to generate $ in annual sales, with costs of $ The project requires an initial investment in net working capital of $ and the fixed asset will have a market value of $ at the end of the project.
a If the tax rate is percent, what is the project's Year net cash flow? Year Year Year A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, eg
b If the required return is percent, what is the project's NPVDo not round intermediate calculations and round your answer to decimal places, eg
tableaYear cash flow,Year cash flow,Year cash flow,Year cash flow,bNPV
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