Question: I need some help with solving this problem. PEC Inc is evaluating a 3 year expansion. The initial fixed asset investment is $3 million. FA

I need some help with solving this problem.

PEC Inc is evaluating a 3 year expansion. The initial fixed asset investment is $3 million.

FA will be three year MACRS.

Projected sales are $2,180,000 annual, with costs of $855,000.

Project requires an initial investment of $400,000 in net working capital.

Fixed assets will have market value of $260,000 at the end of the project.

Tax rate will be 30 %.

Need to determine projects cash flow for each year from Yr 0 through Yr 3, and the npv if the required return is 9%.

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