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Halloween Costumes Unlimited is considering a new 3-year store expansion project that requires an initial fixed asset investment of $2.2 million. The fixed asset falls
Halloween Costumes Unlimited is considering a new 3-year store expansion project that requires an initial fixed asset investment of $2.2 million. The fixed asset falls into the 3year MACRS class and will have a market value of $168,000 after 3 years. The project requires an initial investment in net working capital of $240,000. The project is estimated to generate $1,920,000 in annual sales, with costs of $768,000. The tax rate is 30 percent and the required return on the project is 15 percent. (Do not round your intermediate calculations.) Required: (a)What is the proiect's year 0 net cash flow? (b)What is the proiect's year 1 net cash flow? (c) What is the project's year 2 net cash flow? (d)What is the project's year 3 net cash flow? (e)What is the NPV
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