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Esfandairi Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment of $237 million. The fixed asset will be depreciated

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Esfandairi Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment of $237 million. The fixed asset will be depreciated straightline to zero over its 3 -year tax life. The project is estimated to generate $1,780,000 in annual sales, with costs of $690,000. The project requires an initial investment in net working capital of $390,000, and the fixed asset will have a market value of $390,000 at the end of the project. a. If the tax rate is 24 percent, what is the project's Year 0 net cash flow? Year 1 ? Year 2 ? Year 3 ? (Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, e.g., 1,234,567. A negative answer should be indicated by a minus sign.) b. If the required return is 10 percent, what is the project's NPV? (Do not round intermediate colculations and enter your answer in dollars, not millions of dollars. rounded to 2 decimal places, e.g., 1,234,567.89.) Martinez, Incorporated, has purchased a brand new machine to produce its High Fight line of shoes. The machine has an economic ife of 5 years. The depreciation schedule for the machine is straight-fine with no salvage value. The machine costs $560,000. The sales price per pait of shoes is $81, while the variable cost is $33. Fixed costs of $265,000 per year are attributed to the machine. The corporate tax rate is 21 percent and the approptiate discount rate is 10 percent. What is the financial break-even point? (Do not round intermediate colculations and round your answer to 2 decimal places, e.9. 32.16)

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