Question: PLEASE SHOW ALL STEPS AND WORK. THANK YOU Down Under Boomerang, Inc. is considering a new three year expansion project that requires an initial fixed
Down Under Boomerang, Inc. is considering a new three year expansion project that requires an initial fixed asset investment of $2.94 million. The fixed asset falls into the three-year MACRS class. The project is estimated to generate $2.160,000 in annual sales with costs of 5839,000 The project requires an initial investment in net working capital of $380.000, and the fixed asset will have a market value of $250,000 at the end of the project If the tax rate is 34 percent, what is the project's Year 1 net cash flow? Year 2? Year 3? Table 83 (Enter your answers in dollars, not answers to 2 decimal places, e.g. 1,234,567.89.) millions of dollars. A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your Year o Cash Flow 5-3329000 $ 1205027 Year 2 Year 2 $ 1316182 Year 3 $ 1638971 If the required return is 10 percent, what is the project's NPV? (Enter your answer in dollars, not millions of dollars. Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 1,234,567.89.) NPV $94615.95
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