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Esfandairi Enterprises is considering a new three - year expansion project that requires an initial fixed asset investment of $ 2 . 3 1 million.

Esfandairi Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.31 million. The fixed asset qualifies for 100 percent bonus depreciation in the first year. The project is estimated to generate $1,725,000 in annual sales, with costs of $632,000. The project requires an initial investment in net working capital of $280,000, and the fixed asset will have a market value of $225,000 at the end of the project.

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