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Quad Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment...

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Finance

Quad Enterprises is considering a new 3-year expansion projectthat requires an initial fixed asset investment of $3.402 million.The fixed asset will be depreciated straight-line to zero over its3-year tax life, after which time it will have a market value of$264,600. The project requires an initial investment in net workingcapital of $378,000. The project is estimated to generate$3,024,000 in annual sales, with costs of $1,209,600. The tax rateis 25 percent and the required return on the project is 11percent.

What is the project's Year 0 cash flow?

What is the project's Year 1 net cash flow?

What is the project's Year 2 net cash flow?
What is the project's Year 3 net cash flow?
What is the NPV?

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Quad Enterprises is considering a new 3-year expansion projectthat requires an initial fixed asset investment of $3.402 million.The fixed asset will be depreciated straight-line to zero over its3-year tax life, after which time it will have a market value of$264,600. The project requires an initial investment in net workingcapital of $378,000. The project is estimated to generate$3,024,000 in annual sales, with costs of $1,209,600. The tax rateis 25 percent and the required return on the project is 11percent.What is the project's Year 0 cash flow?What is the project's Year 1 net cash flow?What is the project's Year 2 net cash flow?What is the project's Year 3 net cash flow?What is the NPV?

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