What is the project year zero net cash flow

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Reference no: EM132028921

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.42 million. The fixed asset will be depreciated straight-line over its three-year tax life, and the fixed asset will have a market value of $215823 at the end of the project. The project is estimated to generate $2294260 in annual sales, with costs of $808574. The project requires an initial investment in net working capital of $379586. If the tax rate is 31 percent and the required return on the project is 11 percent, what is the project's Year 0 net cash flow?

Reference no: EM132028921

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