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Excel: Having a tough time coming up with the right formulas for each year. Emeraid isle is an on-line retailer in California that is considering
Excel: Having a tough time coming up with the right formulas for each year. Emeraid isle is an on-line retailer in California that is considering a new sb-year expansion project that would greatly increase its capacity to import and distribute high quality hand-made items from lreland. The project will require an initial fixed asset investment of 51.6 million. The fixed asset will be depreclated straight-line to zero over its slx year tax life. The fixed asset will have a market value of $250,000 at the end of the project. The project will also require an initial investment in net working capital of 5200,000 that will be returned at the end of the project. The project is estimated to generate $1,450,000 in annual sales with costs of $950,000. The tax rate for the firm is 30%. The required return for firm investments is 15%. What is the NPV of this project? What is the IRR
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