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i need #11 solved with the work shown pls 9. Calculating Project OCF [LO1] Esfandairi Enterprises is considering a new threeyear expansion project that requires
i need #11 solved with the work shown pls
9. Calculating Project OCF [LO1] Esfandairi Enterprises is considering a new threeyear expansion project that requires an initial fixed asset investment of $2.18 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $1.645 million in annual sales, with costs of $610,000. If the tax rate is 21 percent, what is the OCF for this project? 10. Calculating Project NPV [LO1] In the previous problem, suppose the required return on the project is 12 percent. What is the project's NPV? 11. Calculating Project Cash Flow from Assets [LO1] In the previous problem, suppose the project requires an initial investment in net working capital of $250,000, and the fixed asset will have a market value of $180,000 at the end of the project. What is the project's Year 0 net cash flow? Year 1? Year 2? Year 3? What is the new NPV Step by Step Solution
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