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H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,580,000. The fixed asset falls into the

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H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,580,000. The fixed asset falls into the three year MACRS class (MACRS Table). The project is estimated to generate $2,310.000 in annual sales, with costs of $1300,000. The project requires an initial investment in net working capital of $166,000, and the fixed asset will have a market value of $191,000 at the end of the project. Assume that the tax rate is 30 percent and the required return on the project is 7 percent. What is the net cash flow of the project each year? (A negative answer should be indicated by a minus sign. Enter your answers in dollars, not millions of dollars, e.g. 1,234,567 Do not round Intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Year Cash Flow 2,746,000 D 1 2 964,974.20 1,051,043 129612 What is the NPV of the project? (Enter your answer in dollars, not millions of dollars, ... 1,234,567. Do not round Intermediate calculations and round your answer to 2 decimol plocose.g. 32.16.) $ 102143,10 NPV

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