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kindly i need it urgent in an hour 5 Problem 10-11 Calculating Project Cash Flow from Assets [LO1] Quad Enterprises is considering a new three-year
kindly i need it urgent in an hour
5 Problem 10-11 Calculating Project Cash Flow from Assets [LO1] Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.31 million. The fixed asset will be depreciated straight- line to zero over its three-year tax life. The project is estimated to generate $1,725,000 in 20 points 20043:10annual sales, with costs of $635,000. The project requires an initial investment in net working capital of $280,000, and the fixed asset will have a market value of $225,000 at the end of the project. eBook Print References f the tax rate is 23 percent, what is the project's Year O net cash flow? Year 1? Year 2? ? (Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, e.g., 1,234,567. A negative answer should be indicated by a a. minus sign.) b. If the required return is 11 percent, what is the project's NPV? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Year 0 cash flow Year 1 cash flow Year 2 cash flow Year 3 cash flow b. NPVStep by Step Solution
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