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

Esfandairi Enterprises is considering a new three-yearexpansion project that requires an initial fixed asset investment of $2.18 million.The fixed asset falls into thethree-year MACRS class. The project is estimated to generate $1.645 millionin annual sales, with costs of $610,000. The tax rate is 21 percent and the required return is 12 percent.Supposethe project requires an initial investment in net workingcapital of $250,000, andthe fixed asset will have a market value of $180,000 at the end of the project. What isthe projects Year 0 net cash flow? Year 1? Year 2? Year 3? What is the NPV? Asset investment =$2,180,000
Estimated annual sales=$1,645,000
Costs=$610,000
Tax rate=21%
Required return=12%
Initial investment in NWC=$250,000
Fixed asset value at end =$180,000
MACRS percentages
Year 1=0.3333
Year 2=0.4445
Year 3=0.1481
Can u please answer it for the excel with the formulas that need to be put in (example B2+B3)
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