What is the projects NPV, Quad Enterprises is considering a

What is the projects NPV

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Reference no: EM13883188

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.88 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 $2,140,000 in annual sales, with costs of $835,000. The tax rate is 35 percent and the required return on the project is 10 percent. What is the project’s NPV?

Reference no: EM13883188

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