Esfandairi Enterprises is considering a new threeyear expansion project that requires an initial fixed asset investment of $ The fixed asset falls into the threeyear MACRS class MACRS schedule The project is estimated to generate $ in annual sales, with costs of $ The project requires an initial investment in net working capital of $ and the fixed asset will have a market value of $ at the end of the project.
a If the tax rate is percent, what is the project's Year net cash flow? Year Year Year
Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to two decimal places, eg
b If the required return is percent, what is the project's NPV
Note: Do not round intermediate calculations and round your answer to two decimal places, eg
tablea Year cash flow,Year cash flow,Year cash flow,Year cash flow,b NPV$
