Part 1: blank considering a new three-year expansion project that requires an initial fixed asset investment of $2,550,000. 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 $2,710,000 in annual sales, with costs of $1,730,000. If the tax rate is 23 percent,

what is the OCF for this project?

Part 2: blank 2 is considering a new three-year expansion project that requires an initial fixed asset investment of $2,300,000. The fixed asset will be depreciated straight-line to zero over a three year tax life, after which it will be worthless. but instead its estimated to generate $2,410,000 in annual sales, with costs of $1,430,000. Assume the tax rate is 23 percent and the required return on the project is 12 percent.

What is the projects NPV?

Part 3: Blank 3 is considering a new three year expansion project that requires a initial fixed asset investment of $2,470,000. The fixed asset will be depreciated straight-line to zero over a three-year tax life. The project is estimated to generate $3,210,000 in annual sales, with having costs of $2,210,000. it requires an initial investment in net working capital of $156,000, and the fixed asset will have a market value of $191,000 at the end of the project. Assume that the tax rate is 21 percent and the required return on the project is 9 percent.

what is Year 0-3 of cash flow and what is the NPV