Question: please help with this question. Thank you! Andover, Inc. is considering a new 4-year expansion project that requires an initial fixed asset investment of $3

please help with this question. Thank you! please help with this question. Thank you! Andover, Inc. is considering a

Andover, Inc. is considering a new 4-year expansion project that requires an initial fixed asset investment of $3 million. The fixed asset will be depreciated straight-line to zero over its 4-year tax life, after which time it will have a market value of $225,000. The project requires an initial investment in net working capital of $330,000, all of which will be recovered at the end of the project. The project is estimated to generate $2,640,000 in annual sales, with costs of $1,056,000. The tax rate is 20 percent and the required return for the project is 15 percent. What is the net present value for this project? $681,409 $714,056 $741,335 $1,007,669 $744,595

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