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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 $1.944 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 $151,200. The expansion also requires an initial investment in net working capital of $216,000, but this investment will be recovered at the end of the project's life. The project is estimated to generate $1,728,000 in annual sales, with costs of $691,200. The tax rate is 32 percent and the required return on the project is 13 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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