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Quad Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment of $3.834 million. The fixed asset will be
Quad Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment of $3.834 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 $298,200. The project requires an initial investment in net working capital of $426,000. The project is estimated to generate $3,408,000 in annual sales, with costs of $1,363,200. The tax rate is 25 percent and the required return on the project is 14 percent. What is the project's Year 0 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 What is the project's Year 3 net cash flow? Year 3 cash flow What is the NPV? NPV
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