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I am struggling with this problem, I need help with B, C, and D. Any help would be greatly appreciated thank you!! Halloween Costumes Unlimited
I am struggling with this problem, I need help with B, C, and D. Any help would be greatly appreciated thank you!!
Halloween Costumes Unlimited is considering a new 3-year store expansion project that requires an initial fixed asset investment of $4.9 million. The fixed asset falls into the 3- year MACRS class (MACRS Table) and will have a market value of $382,200 after 3 years. The project requires an initial investment in net working capital of $546,000. The project is estimated to generate $4,368,000 in annual sales, with costs of $1,747,200. The tax rate is 30 percent and the required return on the project is 17 percent. (Do not round your intermediate calculations.) Required: (a)What is the project's year O net cash flow? -5,446,000 (b)What is the project's year 1 net cash flow? 2,440,737 (c) What is the project's year 2 net cash flow? 2,092,060 (d)What is the project's year 3 net cash flow? 2,677,261 (e) What is the NPV? (Click to select)Step by Step Solution
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