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Pls show work so I can learn how to solve similar problems like it Halloween Costumes Unlimited is considering a new 3-year store expansion project
Pls show work so I can learn how to solve similar problems like it
Halloween Costumes Unlimited is considering a new 3-year store expansion project that requires an initial fixed asset investment of $5.3 million. The fixed asset falls into the 3-year MACRS class (MACRS Table) and will have a market value of $411,600 after 3 years. The project requires an initial investment in net working capital of $588,000. The project is estimated to generate $4,704,000 in annual sales, with costs of $1,881,600. The tax rate is 33 percent and the required return on the project is 10 percent. (Do not round your intermediate calculations.) Required: (a)What is the project's year net cash flow? (Click to select) (b)What is the project's year 1 net cash flow? (Click to select) (c) What is the project's year 2 net cash flow? (Click to select) (d)What is the project's year 3 net cash flow? (Click to select) (e)What is the NPV? (Click to select) Step by Step Solution
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