Question
***Please Explain how to get these answers without using excel**** Quad Enterprises is considering a new 3 year expansion project that requires an initial fixed
***Please Explain how to get these answers without using excel****
Quad Enterprises is considering a new 3 year expansion project that requires an initial fixed asset investment of $2.592 million. the fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will have a market value of $201,600. The project requires an initial investment in net working capital of $288,000. The project is estimated to generate $2,304,000 in annual sales, with costs of $921,600. The tax rate is 23 percent and the required return on the project is 10 percent.
1) What is the projects Year 0 net cash flow?
A. $ -2,880,000
2) What is the projects Year 1 net cash flow?
A. $1,263,168
3) What is the projects Year 2 net cash flow?
A. $1,263,168
4) What is the projects Year 3 net cash flow?
A. $1,706,400
5) What is the NPV?
A. $594,319
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