Question: Question 6 (22 marks) Rivan Co. is considering a new three-year expansion project that requires an initial fixed asset investment of $2.18 million in a

Question 6 (22 marks) Rivan Co. is considering a new three-year expansion project that requires an initial fixed asset investment of \$2.18 million in a large building. The fixed asset applies three year MACRS for tax purpose. The building will be sold for 190,000 in the market at the end of year 3. The project is estimated to generate $1.645 million in annual sales, with annual costs of $610,000. The tax rate is 21 percent, and the required return is 10 percent. You are given the following table shows the depreciation rates
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