What is the projects npv, Quad Enterprises is considering a

What is the projects npv

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Reference no: EM132066222

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.4 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 $1,980,000 in annual sales, with costs of $675,000.

The tax rate is 34 percent and the required return on the project is 18 percent. What is the project's NPV?

Reference no: EM132066222

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