Down Under Boomerang, Inc., is considering a new 3-year expansion project that requires an initial fixed...

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Down Under Boomerang, Inc., is considering a new 3-yearexpansion project that requires an initial fixed asset investmentof $2.37 million. The fixed asset will be depreciated straight-lineto zero over its 3-year tax life. The project is estimated togenerate $1,755,000 in annual sales, with costs of $665,000. Theproject requires an initial investment in net working capital of$340,000, and the fixed asset will have a market value of $315,000at the end of the project. a. If the tax rate is 24 percent, whatis the project’s Year 0 net cash flow? Year 1? Year 2? Year 3? (Donot round intermediate calculations and enter your answers indollars, not millions of dollars, e.g., 1,234,567. A negativeanswer should be indicated by a minus sign.) b. If the requiredreturn is 9 percent, what is the project's NPV? (Do not roundintermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.)

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Down Under Boomerang, Inc., is considering a new 3-yearexpansion project that requires an initial fixed asset investmentof $2.37 million. The fixed asset will be depreciated straight-lineto zero over its 3-year tax life. The project is estimated togenerate $1,755,000 in annual sales, with costs of $665,000. Theproject requires an initial investment in net working capital of$340,000, and the fixed asset will have a market value of $315,000at the end of the project. a. If the tax rate is 24 percent, whatis the project’s Year 0 net cash flow? Year 1? Year 2? Year 3? (Donot round intermediate calculations and enter your answers indollars, not millions of dollars, e.g., 1,234,567. A negativeanswer should be indicated by a minus sign.) b. If the requiredreturn is 9 percent, what is the project's NPV? (Do not roundintermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.)