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Quad Enterprises is considering a new 3-year expansion project that requires an initi fixed asset investment of $5.778 million. The fixed asset will be
Quad Enterprises is considering a new 3-year expansion project that requires an initi fixed asset investment of $5.778 million. The fixed asset will be depreciated straight-lin to zero over its 3-year tax life, after which time it will have a market value of $449,40( The project requires an initial investment in net working capital of $642,000. The proje is estimated to generate $5,136,000 in annual sales, with costs of $2,054,400. The ta rate is 21 percent and the required return on the project is 13 percent. What is the project's Year O net cash flow? Year 0 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? Year 2 cash flow
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