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Quad Enterprises is considering a new 3-year expansion projectthat requires an initial fixed asset investment of $2.2 million.The fixed asset falls into the 3-year MACRS class (MACRS Table) andwill have a market value of $172,200 after 3 years. The projectrequires an initial investment in net working capital of $246,000.The project is estimated to generate $1,968,000 in annual sales,with costs of $787,200. The tax rate is 22 percent and the requiredreturn on the project is 13 percent. What is the project's year 0 net 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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