Question: considering a new three-year expansion project requiring an initial fixed asset investment of $1,500,000. The fixed assets will be depreciated straight-line to zero. The project

considering a new three-year expansion project requiring an initial fixed asset investment of $1,500,000. The fixed assets will be depreciated straight-line to zero. The project is estimated to generate $2,000,000 in annual sales with the costs of goods sold of $800,000. If the marginal tax rate is 25% and the required rate of return is 10%, what is its NPV?

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