This is the only question I need to be answered explained Calculating Project NPV In the previous problem, suppose the required return on the project is 12 percent What is the projects NPV ( I know the answer is NPV $128,787 07 ) But, can you show me the steps on how to solve it Previous problem answer Cash flows Annual sales $1,735,000 00 Less Annual cost $650,000 00 Less Dep 2,320,000 3 $773,333 30 Before tax Income $311,666 70 Less Tax 21 $65,450 00 After Tax $246,216 70 Add Dep $773,333 30 OFC $1,019,550 00 Also, the original question for this one was Calculating Project OCF LO1 Quad Enterprises is considering a new three year expansion project that requires an initial fixed asset investment of $2 32 million 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 $1 735 million in annual sales, with costs of $650,000 If the tax rate is 21 percent, what is the OCF for this project

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Question: This is the only question I need to be answered/explained: Calculating Project NPV: In the previous problem, suppose the required return on the project is

This is the only question I need to be answered/explained: Calculating Project NPV: In the previous problem, suppose the required return on the project is 12 percent. What is the projects NPV? ( I know the answer is NPV $128,787.07 ) But, can you show me the steps on how to solve it?

Previous problem answer

Cash flows:
Annual sales			$1,735,000.00
Less: Annual cost			$650,000.00
Less: Dep	2,320,000/3	$773,333.30
Before tax Income			$311,666.70
Less: Tax 21%			$65,450.00
After Tax			$246,216.70
Add: Dep			$773,333.30
OFC		$1,019,550.00

Also, the original question for this one was....

Calculating Project OCF [LO1] Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.32 million. 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 $1.735 million in annual sales, with costs of $650,000. If the tax rate is 21 percent, what is the OCF for this project?

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