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The Market Place is considering a new four - year expansion project that requires an initial fixed asset investment of $ 2 . 8 million.
The Market Place is considering a new fouryear expansion project that requires an initial fixed asset investment of $ million. The fixed asset will be depreciated straightline to zero over its sevenyear tax life, after which time it will have a market value of $ The project requires an initial investment in net working capital of $ all of which will be recovered at the end of the project. The project is estimated to generate $ in annual sales, with costs of $ The tax rate is percent. The required return for the project, is percent.
Do not round intermediate calculations. Enter your final answer as an integer without decimals or using separators, eg enter for
A negative number eg cash outflows should be indicated with a sign.
What is the year net income: $
What is the yearly OCF: $
What is the change in NOWC at the end of the project: :
What is the aftertax terminal value at the end of the project: $
What is the net present value:
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