Question
Down Under Boomerang Inc, is considering a new three year expansion project that requires an initial fixed asset investment of $2.85 million. The fixed answer
Down Under Boomerang Inc, is considering a new three year expansion project that requires an initial fixed asset investment of $2.85 million. The fixed answer will be depreciated straight line to zero over its three year tax life. the project is estimated to generate $2,130,000 in annual sales, with cost of $825,000. The tax rate is 34 percent and the required return is 11 percent. The project requires an initial investment in net working capital of $350,000, and fixed assets will have a market value of $235,000 at the end of the project.
What is the project's Year 0 net cash flow? Year 1? Year 2? Year 3?(Do not round intermediate calculations. A negative answershould be indicated by a minus sign.) |
Years | Cash Flow |
Year 0 | $ |
Year 1 | $ |
Year 2 | $ |
Year 3 | $ |
What is the NPV?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
NPV | $ |
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