Quad enterprises is considering a new three-year expansion


Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2 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 $2351120 in annual sales, with costs of $908324. If the tax rate is 19 percent, and the required rate on the project is 10 percent, what is the project's NPV?

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Financial Management: Quad enterprises is considering a new three-year expansion
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