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Keiper, Inc., to considering a new three-year expansion project that requires an initial fixed asset investment of $2.7 million. The fixed asset falls into the

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Keiper, Inc., to considering a new three-year expansion project that requires an initial fixed asset investment of $2.7 million. The fixed asset falls into the three-year MACRS class. The project is estimated to generate $2, 080,000 in annual sales, with costs of $775,000. 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. If the tax rate is 35 percent, what is the project's year 1 net cash flow? Year 2 ? Year 3? (Use MACRS) If the required return is 12 percent, what is the project's NPV

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