http://esto.mheducati p-cWeek 12 Ch10 tps New tab Edit View Favorites Tools Help hihi2 G Google ?YouTube n.1???add?? HA, p@hotmail @ Robert-Blackboard Bank N Netf Problem 10-11 Calculating Project Cash Flow from Assets ILO Quad Enterprises is considering a new three year expansion project that requires an initial fixed asset investment of $2.88 million. The fixed asset will be depreciated straight-line to zero over its three-year tax Hfe The project is estimated to generate $2,140,000 in annual sales, with costs of $835,000. The project re quires an initial investment in net working capital of $360,000, and the fixed asset will have a market vaiue of $240,000 at the end of the project If the tax rate is 35 percent, what is the project's Year 0 net cash flow? Year 1? Year 2? Year 3? (Do not round intermediate calculations. Enter your answers in dollars, not millions of dollars, e.g- 1,234,567. Negative amounts should be indicated by a minus sign.) Cash Flow ears Year 0 Year 1 Year 2 Year 3 S 3240000 1184250 1184250 If the required return is 10 percent, what is the projects NPV? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g- 32.16.) NPV References eBook & Resources Worksheet