Question
Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.4 million. The fixed asset falls into the
Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.4 million. The fixed asset falls into the three-year MACRS class. The project is estimated to generate $1,980,000 in annual sales, with costs of $695,000. The project requires an initial investment in net working capital of $200,000, and the fixed asset will have a market value of $310,000 at the end of the project. |
If the tax rate is 34 percent, what is the projects Year 0 net cash flow? Year 1? Year 2? Year 3?(MACRS schedule)(Enter your answers in dollars, not millions of dollars, e.g. 1,234,567. Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and round your final answers to 2 decimal places, e.g., 32.16.) |
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