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Quad Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment of $1.566 million. The fixed asset will be depreciated
Quad Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment of $1.566 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 $121,800. The project requires an initial investment in net working capital of $174,000. The project is estimated to generate $1,392,000 in annual sales, with costs of $556,800. The tax rate is 23 percent and the required return on the project is 15 percent. What is the project's Year O 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? What is the NPV
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