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Business, 24.10.2019 21:43 barloase5747

New three-year expansion project that requires an initial fixed asset investment of $2.38 million. the fixed asset qualifies for 100 percent bonus depreciation in the first year. the project is estimated to generate $1,805,000 in annual sales, with costs of $696,000. the project requires an initial investment in net working capital of $440,000, and the fixed asset will have a market value of $465,000 at the end of the project. if the tax rate is 24 percent, what is the project’s year 0 net cash flow? year 1? year 2? year 3?

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