Question: Quad Enterprises is considering a new three - year expansion project that requires an inital foxed asset investment of $ 2 . 9 million. The

Quad Enterprises is considering a new three-year expansion project that requires an inital foxed asset investment of $2.9 million. The fixed asset will be depreciated straightline to zero over its three-year tax life. The project is estimated to generate $2,190,000 in annual sales, with coosts of $815,000. The project requires an initial investment in net working capital of $300,000, and the fixed asset will have a market value of $210,000 at the end of the project. What is the project's Year 0 net cash flow? Year 1? Year 2? Year 3? The tax rate is 21 percent. If the required reburn is 12 percent, what is the project's NPV?
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Quad Enterprises is considering a new three -

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