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Quad Enterprises is considering a new 3 - year expansion project that requires an initial fixed asset investment of $ 4 . 1 5 8

Quad Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment of $4.158 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 $323,400. The project requires an initial investment in net working capital of $462,000. The project is estimated to generate $3,696,000 in annual sales, with costs of $1,478,400. The tax rate is 25 percent and the required return on the project is 16 percent.
a.What is the project's Year 0 net cash flow?
b.What is the project's Year 1 net cash flow?
c.What is the project's Year 2 net cash flow?
d.What is the project's Year 3 net cash flow?
e.What is the NPV?

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