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PLEASE MAKE SURE TO STATE FORMULA THAT GOES IN YELLOW LIKE STATED IN THE RED...

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Finance

imagePLEASE MAKE SURE TO STATE FORMULA THAT GOES IN YELLOW LIKE STATED IN THE RED PART!

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.9 milion. The fixed asset wil be depreciated on a three-year MACRS schedule. The project is estimated to generate $2,190,000 in annual sales with costs of S815,000. The project requires an initial investment in net working capital of $300,000, and the fixed asset will have a market value of S210,000 at the end of the project. What is the project's Year Onet cash flow? Year 17 Year 27 Year 3? The tax rate is 21 percent. If the required return is 12 percent, what is the project's NPV? Asset investment $ Estimated annual sales $ Costs $ Networking capital $ Prelax salvage value $ Tax rate Project and asset life Required return MACRS percentages Year 1 Year 2 Year 3 2,900,000 2,190,000 815,000 300,000 210,000 21% 3 12% 0.3333 0.4445 0.1481 Complete the following analysis. Do not hard code values in your calculations. You must use the built-in Excel function to calculate the NPV. Sales Costs Depreciation CRT

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