Question: Whatcom Inc., is considering a new 3 - year expansion project that requires an initial fixed asset investment of $ 3 . 2 million. The

Whatcom Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $3.2 million. The fixed asset falls into the 3-year MACRS class (0.3333,0.4445,0.1481,0.0741) and will have a market value of $256,000 after 3 years. The project requires an initial investment in net working capital of $360,000. The project is estimated to generate $2,980,000 in annual sales, with costs of $1,152,000. The tax rate is 15 percent and the require return on the project is 10 percent. What is the project's year 1 Cash Flow?
 Whatcom Inc., is considering a new 3-year expansion project that requires

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