Considering expansion project-what is project net cash flow

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Reference no: EM133578646

Quad Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment of $4.374 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will have a market value of $340,200. The project requires an initial investment in net working capital of $486,000. The project is estimated to generate $3,888,000 in annual sales, with costs of $1,555,200. The tax rate is 24 percent and the required return on the project is 9 percent.

What is the project's Year 0 net cash flow?

What is the project's Year 1 net cash flow?

What is the project's Year 2 net cash flow?

What is the project's Year 3 net cash flow?

What is the NPV?

Reference no: EM133578646

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