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Quad Enterprises is considering a new 3 - year expansion project that requires an initial fixed asset investment of $ 5 . 5 6 2

Quad Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment of $5.562 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will have a market value of $432,600. The project requires an initial investment in net working capital of $618,000. The project is estimated to generate $4,944,000 in annual sales, with costs of $1,977,600. The tax rate is 22 percent and the required return on the project is 15 percent.
What is the project's Year 0 net cash flow? Year 1? The answer options for year one are $2,721,672
$2,857,756
$2,993,839
$2,585,588
$2,449,505

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