Question: Fun With Finance is considering a new 3 - year expansion project that requires an initial fixed asset investment of $ 1 . 8 9
Fun With Finance is considering a new year expansion project that requires an initial fixed asset investment of $ million. The fixed asset will be depreciated straightline to zero over its year tax life, after which time it will have a market value of $ The project requires an initial investment in net working capital of $ The project is estimated to generate $ in annual sales, with costs of $ The tax rate is percent and the required return on the project is percent.
Required:
aWhat is the project's year net cash flow?
bWhat is the project's year net cash flow?
c What is the project's year net cash flow?
dWhat is the project's year net cash flow?
eWhat is the NPV
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