The fixed asset will be depreciated straight-line to zero


Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $3.11 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 $2064280 in annual sales, with costs of $828848. If the tax rate is 34 percent and the required return on the project is 10 percent, what is the project's NPV? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to the nearest dollar amount. Omit the "$" sign and commas in your response. For example, $123,456.78 should be entered as 123457.)

Request for Solution File

Ask an Expert for Answer!!
Financial Management: The fixed asset will be depreciated straight-line to zero
Reference No:- TGS02818975

Expected delivery within 24 Hours