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uad enterprises is considering a new three year expansion project that requires an initial fixed asset investment of 2.4 million. The fixed asset falls into
uad enterprises is considering a new three year expansion project that requires an initial fixed asset investment of 2.4 million. The fixed asset falls into the three year macrs class. The project is estimated to generate 1,980,000 in annual sales, with costs of $695,000. The project requires an initial investment in net working capital of $200,000, and the fixed asset will have market value of $310,000 at the end of the project. If tax rate is 34%, what is the projects year 0 net cash flow? Year 1? Year 2? Year 3? MACRS schedule If the required return is 18%, what is the projects NPV
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