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You will use this information for NINE QUESTIONS. Esfandairi Enterprises is considering a new three- year expansion project that requires an initial fixed asset investment

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You will use this information for NINE QUESTIONS. Esfandairi Enterprises is considering a new three- year expansion project that requires an initial fixed asset investment of $22.78 million. This fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is expected to sell one million units each year at a price per unit of $18.50 and a cost per unit of $6.40 however actual cost and price may be 10% higher or lower than these expected values Fixed costs will be $4 million per year. The tax rate is 21 percent and the required return on the project is 12.4 percent. What is the project's best case scenario NPV? $0.98million $0.52million $1.43million $2.04 million $1.3million

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