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Estandairi Enterptises is considering a new three-vear expansion project that requires an initial fixed asset investment of $2.18 million. The fixed asset falls into the

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Estandairi Enterptises is considering a new three-vear expansion project that requires an initial fixed asset investment of $2.18 million. The fixed asset falls into the three-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. Suppose the project requires an initial investment in net working capital of $250,000, and the fixed asset will have market value of $180,000 at the end of the project. What is the project's Year O net cash flow? Year 17 Year 2 ? Yeat 3 ? What is the NDua IStuisenits: The scratchoad area is for vou to do anv additional work vou need to solve this auestion or can bet used to show vour workiki. Braded Worksheet + Estandairi Enterptises is considering a new three-vear expansion project that requires an initial fixed asset investment of $2.18 million. The fixed asset falls into the three-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. Suppose the project requires an initial investment in net working capital of $250,000, and the fixed asset will have market value of $180,000 at the end of the project. What is the project's Year O net cash flow? Year 17 Year 2 ? Yeat 3 ? What is the NDua IStuisenits: The scratchoad area is for vou to do anv additional work vou need to solve this auestion or can bet used to show vour workiki. Braded Worksheet +

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