Question: please use excel 4. Johnson Inc. is considering a new four-year expansion project that requires an initial fixed asset investment of $2.5 million. The fixed

please use excel 4. Johnson Inc. is considering a new four-year expansion

please use excel

4. Johnson Inc. is considering a new four-year expansion project that requires an initial fixed asset investment of $2.5 million. The fixed asset will be depreciated straight-line to zero over its four-year tax life, after which it will be worthless. The project is estimated to generate $2 million in annual sales, with costs of $800,000. a) If the tax rate is 35 percent, what is the OCF for this project? ( 3 points) b) Suppose the required return on the project is 13 percent. What is the project's NPV? (2 points)

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