Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment...

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Quad Enterprises is considering a new three-year expansionproject that requires an initial fixed asset investment of $2.32million. The fixed asset qualifies for 100 percent bonusdepreciation in the first year. The project is estimated togenerate $1.735 million in annual sales, with costs of $650,000.The project requires an initial investment in net working capitalof $250,000, and the fixed asset will have a market value of$180,000 at the end of the project. The tax rate is 21 percent.
a. What is the project’s Year 0 net cash flow? Year 1? Year 2?Year 3?
b. If the required return is 12 percent, what is the project'sNPV?
a. Year 0
Year 1
Year 2
Year 3
b. NPV

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Quad Enterprises is considering a new three-year expansionproject that requires an initial fixed asset investment of $2.32million. The fixed asset qualifies for 100 percent bonusdepreciation in the first year. The project is estimated togenerate $1.735 million in annual sales, with costs of $650,000.The project requires an initial investment in net working capitalof $250,000, and the fixed asset will have a market value of$180,000 at the end of the project. The tax rate is 21 percent.a. What is the project’s Year 0 net cash flow? Year 1? Year 2?Year 3?b. If the required return is 12 percent, what is the project'sNPV?a.Year 0Year 1Year 2Year 3b.NPV