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hunterl0513
hunterl0513
09.11.2019 • 
Business

Down under boomerang, inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2.97 million. the fixed asset falls into the three-year macrs class. the project is estimated to generate $2,170,000 in annual sales, with costs of $847,000. the project requires an initial investment in net working capital of $390,000, and the fixed asset will have a market value of $255,000 at the end of the project. if the tax rate is 35 percent and the required return is 9 percent, what is the project’s year 1 net cash flow? year 2? year 3? (use macrs) (a negative answer should be indicated by a minus sign. enter your answers in dollars, not millions of dollars, e.g., 1,234,567. do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) what is the project's npv? (enter your answer in dollars, not millions of dollars, e.g., 1,234,567. do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

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