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Esfandairi Enterprises is considering a new three - year expansion project that requires an initial fixed asset investment of $ 2 , 3 7 0

Esfandairi Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2,370,000. The fixed asset falls into the three-year MACRS class (MACRS schedule). The project is estimated to generate $1,780,000 in annual sales, with costs of $676,000. 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 projects Year 0 net cash flow? Year 1? Year 2? Year 3?
B.If the required return is 10 percent, what is the project's NPV?

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