Question: Problem 9-10 Calculating Project NPV (LO 2] 2.5 points H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset

Problem 9-10 Calculating Project NPV (LO 2] 2.5 points H. Cochran,

Problem 9-10 Calculating Project NPV (LO 2] 2.5 points H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,300,000. The fixed asset will be depreciated straight- line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $3,070,000 in annual sales, with costs of $2,090,000. Assume the tax rate is 24 percent and the required return on the project is 11 percent. What is the project's NPV? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) eBook References Net present value

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