What is the projects year net cash flow

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Question - Down Under Boomerang, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2.43 million. The fixed asset qualifies for 100 percent bonus depreciation. The project is estimated to generate $1,990,000 in annual sales, with costs of $703,000. The project requires initial investment in net working capital of $210,000, and the fixed asset will have a market value of $305,000 at the end of the project. The tax rate is 24 percent. What is the projects year 0, 1, 2 and 3 net cash flow? What is the project's NPV?

Reference no: EM133170462

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