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Quad Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment of $4.9 million. The fixed asset falls into the
Quad Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment of $4.9 million. The fixed asset falls into the 3 -year MACRS class (MACRS Table) and will have a market value of $378,000 after 3 years. 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 11 percent. What is the project's year 0 net 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
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