Firm is considering three-year expansion project

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Reference no: EM131555342

A firm is considering a 3-year expansion project that requires an initial fixed asset investment of $1, 500. The fixed asset will be depreciated straight-line to zero over its 3 year life, after which time it will be worthless. The project is estimated to generate $1, 750 in annual sales with annual cost of goods sold of $575. The tax rate is 35%. the cash flow from assets in year 2 for the project.

Reference no: EM131555342

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