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

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Down Under Boomerang, Inc., is considering a new three-yearexpansion project that requires an initial fixed asset investmentof $2.61 million. The fixed asset will be depreciated straight-lineto zero over its three-year tax life, after which time it will beworthless. The project is estimated to generate $2,050,000 inannual sales, with costs of $745,000. The project requires aninitial investment in net working capital of $270,000, and thefixed asset will have a market value of $275,000 at the end of theproject. If the tax rate is 30 percent, what is the project’s Year0 net cash flow? Year 1? Year 2? Year 3? (Do not roundintermediate calculations. Enter your answers in dollars, notmillions of dollars, e.g., 1,234,567. A negative answer should beindicated by a minus sign.)

Cash Flow
Year 0 $
Year 1 $
Year 2 $
Year 3 $

If the required return is 15 percent, what is the project's NPV?(Do not round intermediate calculations and round youranswer to 2 decimal places, e.g., 32.16.)

NPV           $

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Down Under Boomerang, Inc., is considering a new three-yearexpansion project that requires an initial fixed asset investmentof $2.61 million. The fixed asset will be depreciated straight-lineto zero over its three-year tax life, after which time it will beworthless. The project is estimated to generate $2,050,000 inannual sales, with costs of $745,000. The project requires aninitial investment in net working capital of $270,000, and thefixed asset will have a market value of $275,000 at the end of theproject. If the tax rate is 30 percent, what is the project’s Year0 net cash flow? Year 1? Year 2? Year 3? (Do not roundintermediate calculations. Enter your answers in dollars, notmillions of dollars, e.g., 1,234,567. A negative answer should beindicated by a minus sign.) Cash FlowYear 0$Year 1$Year 2$Year 3$If the required return is 15 percent, what is the project's NPV?(Do not round intermediate calculations and round youranswer to 2 decimal places, e.g., 32.16.) NPV $