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Esfandairi Enterprises is considering a new 3 - year expansion project that requires an initial fixed asset investment of $ 2 . 3 4 million.
Esfandairi Enterprises is considering a new year expansion project that requires an initial fixed asset investment of $ million. The fixed asset will be depreciated straightline to zero over its year tax life. 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 pro jects Year net cash flow? Year Year Year Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, eg A negative answer should be indicated by a minus sign.
b
If the required return is percent, what is the project's NPVDo not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to decimal places, eg SOLVE USING EXCEL FUNCTIONS AND PLEASE PROVIDE FUNCTIONS USED.
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