? con=con&external_browser=0&launchUrl=https%253A%252F%2: Exercises and Problems Saved Problem 10-13 NPV and Bonus Depreciation (L01) Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.41 million. The fixed asset qualifies for 100 percent bonus depreciation in the first year. The project is estimated to generate $1775,000 in annual sales, with costs of $672,000. The project requires an initial investment in net working capital of $380,000, and the fixed asset will have a market value of $375,000 at the end of the project a. If the tax rate is 23 percent, what is the project's Year O net cash flow? Year 1? Year 2? Year 3? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, e.g. 1,234,567.) b. If the required return is 9 percent, what is the project's NPV? (Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to two decimal places, .9., 1,234,567.89.) a. $ -2.790.000 Year 0 cash flow Year 1 cash flow Year 2 cash flow Year 3 cash flow NPV b. Search ? con=con&external_browser=0&launchUrl=https%253A%252F%2: Exercises and Problems Saved Problem 10-13 NPV and Bonus Depreciation (L01) Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.41 million. The fixed asset qualifies for 100 percent bonus depreciation in the first year. The project is estimated to generate $1775,000 in annual sales, with costs of $672,000. The project requires an initial investment in net working capital of $380,000, and the fixed asset will have a market value of $375,000 at the end of the project a. If the tax rate is 23 percent, what is the project's Year O net cash flow? Year 1? Year 2? Year 3? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, e.g. 1,234,567.) b. If the required return is 9 percent, what is the project's NPV? (Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to two decimal places, .9., 1,234,567.89.) a. $ -2.790.000 Year 0 cash flow Year 1 cash flow Year 2 cash flow Year 3 cash flow NPV b. Search