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Esfandairi Enterprises is considering a new three - year expansion project that requires an initial fixed asset investment of $ 2 , 4 8 0

Esfandairi Enterprises is considering a new three-year expansion project that requires
an initial fixed asset investment of $2,480,000. The fixed asset will be depreciated
2.5 straight-line to zero over its three-year tax life, after which time it will be worthless.
points
The project is estimated to generate $3,430,000 in annual sales, with costs of
$2,450,000. Assume the tax rate is 25 percent and the required return on the project
is 9 percent. What is the project's NPV?
Note: A negative answer should be indicated by a minus sign. Do not round
intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.
Answer is complete but not entirely correct.
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