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Summer Tyme, Inc., is considering a new 3 - year expansion project that requires an initial fixed asset investment of $ 3 . 8 8

Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $3.888 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 $302,400.The project requires an initial investment in net working capital of $432,000. The project is estimated to generate $3,456,000 in annual sales, with costs of $1,382,400. The tax rate is 35 percent and the required return on the project is 14 percent.
Required:
(a) What is the project's year 0 net cash flow?
(b)What is the project's year 1 net cash flow?
(c) What is the project's year 2 net cash flow?
(d)What is the project's year 3 net cash flow?
(e)What is the NPV?

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