Down Under Boomerang, Inc., is considering a new three-year expansion project that requires an initial fixed asset
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Question:
Down Under Boomerang, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2.91 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which it will be worthless. The project is estimated to generate $2,150,000 in annual sales, with costs of $845,000. The tax rate is 30 percent and the required return is 11 percent. |
What is the projects NPV?(Do not round intermediate calculations andround your answer to 2 decimal places, e.g., 32.16.) |
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