What is the project NPV

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Question - Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.53 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 $244,683 at the end of the project. The project is estimated to generate $2,113,986 in annual sales, with costs of $851,050. The project requires an initial investment in net working capital of $375,373. If the tax rate is 32 percent and the required return on the project is 11 percent, what is the project's NPV?

Reference no: EM132762518

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