Question: Quad Enterprises is considering a new 3 - year expansion project that requires an initial fixed asset investment of $ 4 . 2 1 2

Quad Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment of $4.212 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will have a market value of $327,600. The project requires an initial investment in net working capital of $468,000. The project is estimated to generate $3,744,000 in annual sales, with costs of $1,497,600. The tax rate is 23 percent and the required return on the project is 16 percent.
What is the project's Year 0 net cash flow?
What is the project's Year 1 net cash flow?
What is the project's Year 2 net cash flow?
What is the project's Year 3 net cash flow?
What is the NPV?

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