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Quad Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment of $1.7 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 $1.7 million. The fixed asset falls into the 3-year MACRS class (MACRS Table) (TIP. make sure you refer to this MACRS tablel The one on our PowerPoint slides may have slightly different numbers) and will have a market value of $130,200 after 3 years. The project requires an initial investment in net working capital of $186,000. The project is estimated to generate $1,488,000 in annual sales, with annual production costs of $595,200. The tax rate is 22 percent and the required return on the project is 13 percent. What is the project's year o net cash flow? What is the project's year 1 net cash flow? What is the projects year 2 net cash flow? What is the project's yeat 3 net cash flcw
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