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28 Sep 2019
Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.3 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $2300436 in annual sales, with costs of $780958. The tax rate is 34 percent and the required return on the project is 12 percent. What is the projectâs NPV?
Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.3 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $2300436 in annual sales, with costs of $780958. The tax rate is 34 percent and the required return on the project is 12 percent. What is the projectâs NPV?
Nestor RutherfordLv2
28 Sep 2019
