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Firm xyz is considering 3-year expansion project that a new requires an initial fixed asset investment of 2.1 million. The fixed asset will be depreciated

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Firm xyz is considering 3-year expansion project that a new requires an initial fixed asset investment of 2.1 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will have a market value of $200,000. The project requires an initial investment in net working capital of $420,000. The project is estimated to generate $2,560,000 in annual sales, with costs of $1,002,000 The tax rate is 30 percent and the required return on the project is 15 percent. Should the firm consider to accept the project

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