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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 depreclated
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 depreclated straight-IIne 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 24 percent and the required return on the project is 14 percent. What is the project's Year 0 net cash flow? What is the project's Year 1 net cash flow? What is the project's Year 2 net cash flow? What is the project's Year 3 net cash flow? What is the NPV? 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 depreclated straight-IIne 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 24 percent and the required return on the project is 14 percent. What is the project's Year 0 net cash flow? What is the project's Year 1 net cash flow? What is the project's Year 2 net cash flow? What is the project's Year 3 net cash flow? What is the NPV
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