Question: Keene, Inc. is considering a new five-year expansion project that requires an initial fixed asset investment of $3.0 million. The fixed asset will be depreciated

 Keene, Inc. is considering a new five-year expansion project that requires

Keene, Inc. is considering a new five-year expansion project that requires an initial fixed asset investment of $3.0 million. The fixed asset will be depreciated using on a straight-line basis to zero over its five year life. The fixed asset will have a market value of $350,000 at the end of the project. The project requires an initial investment in net working capital of $325,000. The working capital will be recovered at the end of the project's life. The project is estimated to generate $2,250,000 in annual sales, with costs of $750,000. The tax rate is 35 percent. Calculate the total amount of cash flows that take place in year 5 on this project. O a. $447,520 b. $675,000 OC. $552,500 O d. $1,737,500 Oe. $601,250

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