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 $2.64 million. The fixed asset falls into the three-year MACRSclass. The project is estimated to generate $2,060,000 in annualsales, with costs of $759,000. The project requires an initialinvestment in net working capital of $280,000, and the fixed assetwill have a market value of $270,000 at the end of theproject.

If the tax rate is 35 percent, what is the project’s Year 1 netcash flow? Year 2? Year 3? Table 8.3. (Enter your answersin dollars, not millions of dollars. A negative answer should beindicated by a minus sign. Do not round intermediate calculationsand round your answers to 2 decimal places, e.g.,1,234,567.89.)
Cash Flow
Year 0 $
Year 1 $
Year 2 $
Year 3 $

If the required return is 13 percent, what is the project's NPV?(Enter your answer in dollars, not millions of dollars. Donot round intermediate calculations and round your answer to 2decimal places, e.g., 1,234,567.89.)

NPV           $

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Down Under Boomerang, Inc., is considering a new three-yearexpansion project that requires an initial fixed asset investmentof $2.64 million. The fixed asset falls into the three-year MACRSclass. The project is estimated to generate $2,060,000 in annualsales, with costs of $759,000. The project requires an initialinvestment in net working capital of $280,000, and the fixed assetwill have a market value of $270,000 at the end of theproject. If the tax rate is 35 percent, what is the project’s Year 1 netcash flow? Year 2? Year 3? Table 8.3. (Enter your answersin dollars, not millions of dollars. A negative answer should beindicated by a minus sign. Do not round intermediate calculationsand round your answers to 2 decimal places, e.g.,1,234,567.89.)Cash FlowYear 0$Year 1$Year 2$Year 3$If the required return is 13 percent, what is the project's NPV?(Enter your answer in dollars, not millions of dollars. Donot round intermediate calculations and round your answer to 2decimal places, e.g., 1,234,567.89.) NPV $