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Quad Enterprises is considering a new 3 - year expansion project that requires an initial fixed asset investment of $ 4 . 3 2 million.

Quad Enterprises is considering a new 3-year expansion project that requires
an initial fixed asset investment of $4.32 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 $336,000. The project requires an initial investment in
net working capital of $480,000. The project is estimated to generate
$3,840,000 in annual sales, with costs of $1,536,000. The tax rate is 25
percent and the required return on the project is 9 percent.
What is the project's Year 0 net cash flow?
What is the project's Year 1 net cash flow?
Year 1 cash flow
What is the project's Year 2 net cash flow?
What is the project's Year 3 net cash flow?
Year 3 cash flow
What is NPV?
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