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East Coast Enterprises is considering a new three - year expansion project that requires an initial fixed asset investment of $ 2 . 1 8

East Coast Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.18 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life. The project is estimated to generate EBIT of $363,333. There is no interest expense. Operating Cash Flow remains constant throughout the project. The project requires an initial investment in net working capital of $290,000, which will be recovered at the end of the project. The fixed asset will have a market value of $240,000 at the end of the project. The tax rate is 24 percent. The required return (or discount rate) is 12 percent.
COMPLETE PARTS a,b,c,d,e, and f as detailed below:
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