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XYz corporation is considering a new three year expansion project that has an initial fixed asset cost of 3million. The project also requires an intital
XYz corporation is considering a new three year expansion project that has an initial fixed asset cost of 3million. The project also requires an intital investment in NWC of $200000. The fixed asset will be depreciated straight lime to zero salvage value over its 3 year tax life, after which time it will be worrh $175,000(MV3^new=175,000). The project is estimated to generate 1,650,000 in annual sales, with cost of $650,000.XYZ corporation tax rate is 40%. What are the three OPerating cash flows for t=1,2,3 for this project. (Note: all three cash flows are the same)
Answer choices
A)600000
B)976666.67
C)1,000,000
D)1,780,000
thank you in advance
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