What is the projects NPV, Down Under Boomerang, Inc., is

What is the projects NPV

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Reference no: EM131044081

Down Under Boomerang, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2.52 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $2,020,000 in annual sales, with costs of $715,000. The tax rate is 30 percent and the required return on the project is 16 percent. What is the project's NPV? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Reference no: EM131044081

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