Keiper inc is considering a new three-year expansion


Keiper, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2.85 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 $2,130,000 in annual sales, with costs of $825,000. The tax rate is 34 percent and the required return on the project is 11 percent. What is the project’s NPV? (Round your answer to 2 decimal places. (e.g., 32.16))

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Financial Management: Keiper inc is considering a new three-year expansion
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