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Business, 03.07.2019 04:20 raulramirez01

Quad enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.28 million. the fixed asset falls into the three-year macrs class (macrs schedule). the project is estimated to generate $1,750,000 in annual sales, with costs of $652,000. the project requires an initial investment in net working capital of $330,000, and the fixed asset will have a market value of $300,000 at the end of the project. a. if the tax rate is 23 percent, what is the project’s year 0 net cash flow? year 1? year 2? year 3

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