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Quad Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment of $1.458 million. The fixed asset will be depreciated

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Quad Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment of $1.458 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 $113,400. The project requires an initial investment in net working capital of $162,000. The project is estimated to generate $1,296,000 in annual sales, with costs of $518,400. The tax rate is 23 percent and the required return on the project is 17 percent. What is the project's Year O net cash flow? Year 0 cash flow $-1,620,000 $-1,701,000 $-1,782,000 $-1,539,000 What is the project's Year 1 net cash flow? Year 1 cash flow $ 710,532 $ 746,059 $ 781,585 $ 675,005 What is the project's Year 2 net cash flow? Year 2 cash flow $ 710,532 $ 746,059 $ 781,585 $ 675,005 What is the project's Year 3 net cash flow? Year 3 cash flow $ 959,850 $1,007,843 $1,055,835 $ 911,858 What is the NPV? NPV $ 105,648 $(524,575) $ 845,668 $ 111,981

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