What is the project npv

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Starbucks, is considering a new 3 year expansion project that requires an initial fixed asset investment of $2,350,000. The fixed asset will be depreciated straight-line to zero over its 3 year tax life, after which time it will be worthless. The project is estimated to generate $2,590,000 in annual sales, with costs of $1,610,000. Assume the tax rate is 21 percent and the required return on the project is 11 percent. What is the project's NPV?

Reference no: EM132406877

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