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plz help D29 A B C D Esandairi Enterprises is considering a new three-year expansion project that requires an initial fuxed asset investment of S2.18
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D29 A B C D Esandairi Enterprises is considering a new three-year expansion project that requires an initial fuxed asset investment of S2.18 milion. The fixed asset will be depreciated straight-line to zero over its three-year tax life. The project is estimated to generate 51,645 million in annual sales, with costs of $610,000. The tax rate is 21 percent and the required return is 12 . percent. Suppose the project requires an initial investment in nat working capital of $250,000, and the fixed asset will have a market value of \$180,000 at the end of the project. What is the project's Year 0 net cash flow? Year 1? Year 2? Year 3 ? What 2 is the NPV? (input oreo: (Use cells A6 to 813 from the given information to complete this question. You must use the built-in Excel function to answer this question. Taxes on the salvage value should be negative for a tax liability and positive for a tax credit.) Output orea: Aftertax salvage value Sell equipment Taxes Aftertax salvage value Year 0 Sales Conts Depreciation EBT Taxes Net income Capital spending Net working capital OCCF Total cashflow NPV Step by Step Solution
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