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Please round to TWO DECIMAL places please Simmons, Inc., is considering a new 4-year project that requires an initial fixed asset investment of $2.85 million.
Please round to TWO DECIMAL places please
Simmons, Inc., is considering a new 4-year project that requires an initial fixed asset investment of $2.85 million. The fixed asset is eligible for 100 percent bonus depreciation in the first year. At the end of the project, the asset can be sold for $400,000. The project is expected to generate $2.65 million in annual sales, with annual expenses of $915,000. The project will require an initial investment of $450,000 in NWC that will be returned at the end of the project. The corporate tax rate is 24 and the project has a required return of 15 percent. What is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV $ 1286757 Step by Step Solution
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