2)

Down Under Boomerang, Inc. is considering a new three-year expansion project that requires an initial fixed asset investment of $2.4 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which it will be worthless. The project is estimated to generate $2,050,000 in annual sales, with costs of $950,000. The tax rate is 35% and the required return is 12 percent. What are the projects NPV[Select ] and IRR I Select ] What are the projects NP I Select ] -11,432 9,625 and IRR ? | -10,178 -10,758 percent. What are the projects NPV[Select ] and IRR I Select 11.75% 15.49% 10.04% 12.83% In problem 4, suppose the project requires an initial investment in net working capital of $285,000 and the fixed asset will have a market value of $225,000 at the end of the project. What are the new NPV I Select] and IRR Select ] In problem 4, suppose the project requires an initial investment in net working capital of $285,000 and the fixed asset will have a market value of $225,000 at the end of the project. What are the new and IRR [Select ] ISelect ] 10,903 8.654 12,327 11,777 In problem 4, suppose the project requires an initial investment in net working capital of $285,000 and the fixed asset will have a market value of $225,000 at the end of the project. What are the new NPV [Select ] and IR[Select] 12.24% 10.09% 14.27% 11 .98%