Question
Quad Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment of $4.86 million. The fixed asset will be depreciated
Quad Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment of $4.86 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 $378,000. The project requires an initial investment in net working capital of $540,000. The project is estimated to generate $4,320,000 in annual sales, with costs of $1,728,000. The tax rate is 21 percent and the required return on the project is 10 percent. |
What is the projects year 0 net cash flow?
what is the projects year 1 net cash flow?
what is the projects year 2 net cash flow?
what is the projects year 3 net cash flow?
what is the npv?
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