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H. Cochran, Inc., is considering a new three-year expansionproject that requires an initial fixed asset investment of$2,300,000. The fixed asset will be depreciated straight-line tozero over its three-year tax life, after which time it will beworthless. The project is estimated to generate $2,650,000 inannual sales, with costs of $1,670,000. Assume the tax rate is 22percent and the required return on the project is 12 percent. Whatis the project’s NPV? (A negative answer should beindicated by a minus sign. Do not round intermediate calculationsand round your answer to 2 decimal places, e.g.,32.16.)
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