part D d. If Keiper is able to sell its fixed asset investments in this project at the end of three years for $270,000 how would it impact the projects NPV? part E Go back to the initial assumptions, but instead of straight-line depreciation the accounting department determines the initial investment qualifies for 3-year MACRS. What is the operating cash flow of the project and what is its NPV? The depreciation schedule is shown below. Year 1 2 3 Depreciation % 33.33% 44.45% 22.22%

2. Keiper, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2.7 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 $2,080,000 in annual sales, with costs of $775,000. The company's tax rate is 35 percent, its required return is 12%. What is the OCF for this project? a. Copyright 2021. This document is protected by U.S. and International copyright laws. Reproduction and distribution without the written permission of the sponsor is prohibited. Fin 3030 Week 14 homework Page 2 of 5 b. What is the project's NPV? c. What is the project's IRR