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Halloween Costumes Unlimited is considering a new 3 - year store expansion project that requires an initial fixed asset investment of $ 6 . 4

Halloween Costumes Unlimited is considering a new 3-year store expansion project that
requires an initial fixed asset investment of $6.4 million. The fixed asset falls into the 3-
year MACRS class (MACRS Table) and will have a market value of $495,600 after 3
years. The project requires an initial investment in net working capital of $708,000. The
project is estimated to generate $5,664,000 in annual sales, with costs of $2,265,600.
The tax rate is 30 percent and the required return on the project is 14 percent. (Do not
round your intermediate calculations.)
Required:
(a)What is the project's year 0 net cash flow?
-7,108,000,vv
(b)What is the project's year 1 net cash flow?
2,867,875
(c)What is the project's year 2 net cash flow?
(Clickto select)vv
(d)What is the project's year 3 net cash flow?
(Clickto select)vv
(e)What is the NPV?
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