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uad Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment of $2.16 million. The fixed asset will be depreciated
uad Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment of $2.16 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 $168,000. The project requires an initial investment in net working capital of $240,000. The project is estimated to generate $1,920,000 in annual sales, with costs of $768,000. The tax rate is 22 percent and the required return on the project is 16 percent. |
What is the project's Year 0 net cash flow? |
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What is the project's Year 1 net cash flow? |
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What is the project's Year 2 net cash flow? |
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What is the project's Year 3 net cash flow? |
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What is the NPV? |
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