Expansion project-requires initial fixed asset investment

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Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.67 million. The fixed asset will be depreciated straight-line over its three-year tax life, and the fixed asset will have a market value of $296922 at the end of the project. The project is estimated to generate $2044108 in annual sales, with costs of $899932. The project requires an initial investment in net working capital of $368006. If the tax rate is 35 percent and the required return on the project is 12 percent, what is the project's Year 0 net cash flow?

Reference no: EM13923729

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