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quad enterprises is considering a new three year expansionproject that requires an initial fixed asset investment of 229million. the fixed asset will be depreciated straight line to zeroover its three year tax life. the project is estimated to generate$1,810,000 in annual sales, with the costs of $720,000. the projectrequires an initial investment in net working capital of $450,000and the fixed asset will have a market value of $480,000 at the endof the project. a. if the tax rate is 25 percent, what is theproject's year 0 net cash flow? year 1? year2? year 3? b. if herequired return is 12 percent, what is the projects's NPV?
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