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I specifically need question 12 solved thank you. In excel form with calculations shown. Thank you 9. 10. Calculating Project OCF [LO1] Quad Enterprises is
I specifically need question 12 solved thank you. In excel form with calculations shown. Thank you
9. 10. Calculating Project OCF [LO1] Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.32 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 $1.735 million in annual sales, with costs of $650,000. If the tax rate is 21 percent, what is the OCF for this project? Calculating Project NPV [LO1] In the previous problem, suppose the required return on the project is 12 percent. What is the project's NPV? 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? NPV and MACRS [LO1] In the previous problem, suppose the fixed asset actually falls into the three-year MACRS class. All the other facts are the same. What is the project's Year 1 net cash flow now? Year 2? Year 3? What is the new NPV? 11. 12Step by Step Solution
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