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Esfandairi Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2,330,000. The fixed asset falls into the three-year

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Esfandairi Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2,330,000. The fixed asset falls into the three-year MACRS class (MACRS schedule). The project is estimated to generate $1,735,000 in annual sales, with costs of $640,000. The project requires an initial investment in net working capital of $300,000, and the fixed asset will have a market value of $255,000 at the end of the project. a. If the tax rate is 25 percent, what is the project's Year 0 net cash flow? Year 1 ? Year 2 ? Year 3 ? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to two decimal places, e.g., 32.16. b. If the required return is 9 percent, what is the project's NPV? Note: Do not round intermediate calculations and round your answer to two decimal places, e.g., 32.16

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