ANSWER IN BOLD 8 has multiple parts A

B and C

E and F

Quad Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment of $2.916 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will have a market value of $226,800. The project requires an initial investment in net working capital of $324,000. The project is estimated to generate $2,592,000 in annual sales, with costs of $1,036,800. The tax rate is 24 percent and the required return on the project is 16 percent. What is the project's Year O net cash flow? Year 0 cash flow What is the project's Year 1 net cash flow? Year 1 cash flow What is the project's Year 2 net cash flow? Year 2 cash flow What is the project's Year 3 net cash flow? Year 3 cash flow What is the NPV? NPV