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I need help computing the equations. G7 X fix A B D E F G H 3 Quad Enterprises is considering a new three-year expansion

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G7 X fix A B D E F G H 3 Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.9 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life. The project is estimated to generate $2,190,000 in annual sales, with costs of $815,000. The project requires an initial investment in net working capital of $300,000, and the fixed asset will have a market value of $210,000 at the end of the project. What is the project's Year 0 net cash flow? Year 12 Year 2? Year 3? The tax rate is 21 percent. If the required return is 12 percent, what is the project's NPV? 4 5 6 2 $ $ $ $ 8 9 Asset investment Estimated annual sales Costs Net working capital Pretax salvage value Tax rate Project and asset life Required return 2,900,000 2,190,000 815,000 300,000 210,000 21% 3 12% 10 12 13 14

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