Fun With Finance is considering a new 3-year expansion project that requires an initial fixed asset...

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Finance

Fun With Finance is considering a new 3-year expansion projectthat requires an initial fixed asset investment of $3.456 million.The fixed asset will be depreciated straight-line to zero over its3-year tax life, after which time it will have a market value of$268,800. The project requires an initial investment in net workingcapital of $384,000. The project is estimated to generate$3,072,000 in annual sales, with costs of $1,228,800. The tax rateis 31 percent and the required return on the project is 18percent.

Required:
(a) What is the project's year 0 net cash flow?
  (Click toselect)   -4,032,000   -4,224,000   -3,840,000   -3,456,000   -3,648,000

(b) What is the project's year 1 net cash flow?
  (Click toselect)   1,547,482   1,466,035   1,710,374   1,628,928   1,791,821

(c) What is the project's year 2 net cash flow?
  (Click toselect)   1,628,928   1,710,374   1,547,482   1,791,821   1,466,035

(d) What is the project's year 3 net cash flow?
  (Click toselect)   2,418,240   2,088,480   2,308,320   2,198,400   1,978,560

(e) What is the NPV?
  (Click toselect)   48,332   85,734   1,468,098   -615,674   50,749

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Fun With Finance is considering a new 3-year expansion projectthat requires an initial fixed asset investment of $3.456 million.The fixed asset will be depreciated straight-line to zero over its3-year tax life, after which time it will have a market value of$268,800. The project requires an initial investment in net workingcapital of $384,000. The project is estimated to generate$3,072,000 in annual sales, with costs of $1,228,800. The tax rateis 31 percent and the required return on the project is 18percent. Required:(a)What is the project's year 0 net cash flow? (Click toselect) -4,032,000 -4,224,000 -3,840,000 -3,456,000 -3,648,000 (b)What is the project's year 1 net cash flow? (Click toselect) 1,547,482 1,466,035 1,710,374 1,628,928 1,791,821 (c)What is the project's year 2 net cash flow? (Click toselect) 1,628,928 1,710,374 1,547,482 1,791,821 1,466,035 (d)What is the project's year 3 net cash flow? (Click toselect) 2,418,240 2,088,480 2,308,320 2,198,400 1,978,560 (e)What is the NPV? (Click toselect) 48,332 85,734 1,468,098 -615,674 50,749

Required:
(a)	What is the project's year 0 net cash flow?
	(Click toselect) -4,032,000 -4,224,000 -3,840,000 -3,456,000 -3,648,000

(b)	What is the project's year 1 net cash flow?
	(Click toselect) 1,547,482 1,466,035 1,710,374 1,628,928 1,791,821

(c)	What is the project's year 2 net cash flow?
	(Click toselect) 1,628,928 1,710,374 1,547,482 1,791,821 1,466,035

(d)	What is the project's year 3 net cash flow?
	(Click toselect) 2,418,240 2,088,480 2,308,320 2,198,400 1,978,560

(e)	What is the NPV?
	(Click toselect) 48,332 85,734 1,468,098 -615,674 50,749