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Quad Enterprises is considering a new 3-year expansion project that requires an Initial fixed asset Investment of $2.646 million. The fixed asset will be depreciated
Quad Enterprises is considering a new 3-year expansion project that requires an Initial fixed asset Investment of $2.646 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 $205,800. The project requires an Initial Investment In net working capital of $294,000. The project is estimated to generate $2,352,000 in annual sales, with costs of $940,800. The tax rate is 24 percent and the required return on the project is 13 percent. What is the project's Year O 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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