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What is the projects npv for quad enterprises

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Question 1: Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.91 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 $2,150,000 in annual sales, with costs of $845,000. The tax rate is 30 percent and the required return on the project is 11 percent. What is the project's NPV?

Reference no: EM132506123

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