Requires an initial fixed asset investment

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Reference no: EM132002111

Air Taxi, Inc. is considering a new 3-year expansion project that requires an initial fixed asset investment of $1,450,000 million dollars. The asset will be depreciated over a 3 year tax life and have no salvage value. The project is estimated to have annual cash flows of $1,240,000 with a cost of $430,000. The tax rate is 35% percent and the required rate of return is 10% percent. What is the project NPV?

Reference no: EM132002111

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