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Please show excel equations. Thank you in advance! Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of
Please show excel equations. Thank you in advance!
Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.9 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life. The project is estimated to generate $2,190,000 in annual sales, with costs of $815,000. The project requires an initial investment in net working capital of $300,000, and the fixed asset will have a market value of $210,000 at the end of the project. What is the project's Year 0 net cash flow? Year 1? Year 2? Year 3? The tax rate is 21 percent. If the required return is 12 percent, what is the project's NPV? Complete the followinq analysis. Do not hard code values in vour calculations. You mustStep by Step Solution
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