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Your company is developing a new textbook for FIN 301 and you paid your current FIN 301 instructor $700,000 for his input about the feasibility

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Your company is developing a new textbook for FIN 301 and you paid your current FIN 301 instructor $700,000 for his input about the feasibility of such a product. The project would involve initial capital investment of $1,300,000 and installation costs related to the capital expenditures of $500,000. The project would also necessitate an increase in net working capital of $300,000 at the beginning of the project. You can straight line depreciate any depreciable expenses to zero over the three-year life of the project, and you don't expect the capital investment to be sold at the end of the project. Each year, you estimate you will receive $3,000,000 in sales rehenue from your awesome textbook. Variable product and selling costs associated with these sales are expected to be 40% of revenue in each of those years. The fixed costs in each of the three years of the project will be $400,000. The corporate tax rate is 40%. Calculate the total year 0 cash flows associated with the project. Calculate the year 1 EBIT. Calculate the TOTAL year 1 cash flows associated with the project. Calculate the TOTAL year 3 cash flows associated with the project

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