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Quad Enterprises is considering a new 3-year expansion project that requires an Initial fixed asset Investment of $6.3 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 $6.3 million. The fixed asset falls into the 3-year MACRS class (MACRS Table and will have a market value of $491,400 after 3 years. The project requires an Initial Investment in net working capital of $702,000. The project is estimated to generate $5,616,000 in annual sales, with costs of $2,246,400. The tax rate Is 24 percent and the required return on the project is 11 percent. What is the project's year O net cash flow? Year 0 cash flow S -7,002,000 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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