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XYZ Corporation is considering a new three-year expansion project that has an initial fixed asset cost of $3 million. The project also requires an initial

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XYZ Corporation is considering a new three-year expansion project that has an initial fixed asset cost of $3 million. The project also requires an initial investment in net working capital of $200,000. The fixed asset will be depreciated straight-line to zero salvage value over its three-year tax life, New after which time it will be worth $175,000 (MV3 $175,000). The project is estimated to generate $1,650,000 in annual sales, with costs of $650,000. XYZ's corporate tax rate is 40 percent. What are the three AOCFt for t = 1, 2, and 3 for this project? (Note: All three are the same.) $976,666.67 $600,000 $1,780,000 $1,000,000

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