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Please solve in excel, I need to know the formula to solve each portion Quad Enterprises is considering a new three-year expansion project that requires
Please solve in excel, I need to know the formula to solve each portion
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 5815,000. 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? Asset investment 2,900,000 2,190,000 815,000 300,000 210,000 Estimated annual sales Costs Net working capital Pretax salvage value Tax rate 21% Project and asset life Required return 12% Complete the following analysis. Do not hard code values in your calculations. You must use the built-in Excel function to calculate the NPV. Aftertax salvage value Sell equipment 210,000 Taxes Aftertax cash flow Sales Costs Depreciation EBT es Net income Capital spending Net working capital OCF Net cash flow NPVStep by Step Solution
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