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The Market Place is considering a new four-year expansion project that requires an initial fixed...

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Finance

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The Market Place is considering a new four-year expansion project that requires an initial fixed asset investment of $1.67 million. The fixed asset will be depreciated straight-line to zero over its four-year tax life, after which time it will have a market value of $435,000. The project requires an initial investment in net working capital of $198,000, all of which will be recovered at the end of the project. The project is estimated to generate $1,850,000 in annual sales, with costs of $1,038,000. The tax rate is 21 percent and the required return for the project is 16.4 percent. What is the net present value? (fill in the blanks with values with no dollar signs "$", and commas "". Example: $1,234 >>> write as 1234) Year o Year 1 Year 2 Year 3 Year 4 OCF 729155 729155 729155 1270805 Change in NWC Capital spending Total cash flow

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