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Winter Tyme, Inc., produces coats and Jackets for the Seattle market. The company is considering a new 3 -year expansion project into the Portland market.

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Winter Tyme, Inc., produces coats and Jackets for the Seattle market. The company is considering a new 3 -year expansion project into the Portland market. The expansion requires an initial investment of $2.484 million in new plant and equipment. These assets will be depreciated straight-line to zero over its 3-year tax life, after which time the assets can be sold for $193,200. The expansion also requires an initial investment in net working capital of $276,000, but this investment will be recovered at the end of the project's life. The project is estimated to generate $2,208,000 in annual sales, with costs of $883,200. The tax rate is 32 percent and the required return on the project is 9 percent. Required: (a) What is the project's start-up cost, the year 0 cash flow from assets? Hint this typically doesn't include OCF. (b) What is the project's year 1 cash flow from assets? (c) What is the project's year 2 cash flow from assets? (d) What is the project's year 3 cash flow from assets? (e) What is the NPV

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