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Summer Time. Inc.. is considering a new 3-year expansion project that requires an initial fixed asset investment of S2.97 million. The fixed asset will be
Summer Time. Inc.. is considering a new 3-year expansion project that requires an initial fixed asset investment of S2.97 million. The fixed asset will be depredated straight-line to zero over its 3-year tax life, after which time it will have a market value (salvage value) of S231.000. The project requires an initial investment in networking capital of S330.000. The project is estimated to generate S2.640.000 in annual sales, with costs of S1.056.000. The tax rate is 32 percent and the required return on the project is 15 percent. What is the project's year 0 net cash flow? What is the project's year 1 net cash flow? What is the project's year 2 net cash flow? What is the project's year 3 net cash flow
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