Considering new three-year expansion project

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Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.49 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life and is estimated to have a market value of $288739 at the end of the project. The project is estimated to generate $2231427 in annual sales, with costs of $873183. The project requires an initial investment in net working capital of $361964. If the tax rate is 34 percent and the required return on the project is 8 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.)

Reference no: EM131532814

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