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Halloween Costumes Unlimited is considering a new 3-year store expansion project that requires an initial fixed asset Investment of $1.2 million. The fixed asset
Halloween Costumes Unlimited is considering a new 3-year store expansion project that requires an initial fixed asset Investment of $1.2 million. The fixed asset falls into the 3- year MACRS class (MACRS Table) and will have a market value of $92,400 after 3 years. The project requires an Initial Investment in net working capital of $132,000. The project Is estimated to generate $1,056,000 in annual sales, with costs of $422,400. The tax rate is 32 percent and the required return on the project is 12 percent. (Do not round your Intermediate calculations.) Required: (a) What is the project's year 0 net cash flow? (Click to select) (b)What is the project's year 1 net cash flow? (Click to select) (c) What is the project's year 2 net cash flow? (Click to select) (d)What is the project's year 3 net cash flow? (Click to select) (e) What is the NPV? (Click to select)
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