Question: Show Excel functions =NPV and =IRR 9. Calculating Project OCF [LO1] Quad Enerpriese is considering a new three-year expansion project that rerrquires an initial fixed

Show Excel functions =NPV and =IRR

9. Calculating Project OCF [LO1] Quad Enerpriese is considering a new three-year expansion
project that rerrquires an initial fixed asset investment of $2.9 mllion. The fized asset will be
depreciated striaght-line to zero over its three-year tax life, after which time time it will be
worthless. The project is estrimate to generate $2,190,000 in annual sales with costs of $815,000.

If the tax rate is 35 percent, what is the OCF for this project?

10. Calculating Project NPV [LO1] In the previous problem, suppose the required return on the project
is 12 percent. What is the project's NPV

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