Down under boomerang, inc., is considering a new 3-year expansion
Down Under Boomerang, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $3.996 million. The fixed asset falls into the 3-year MACRS class (MACRS Table) and will have a market value of $310,800 after 3 years. The project requires an initial investment in net working capital of $444,000. The project is estimated to generate $3,552,000 in annual sales, with costs of $1,420,800. The tax rate is 35 percent and the required return on the project is 14 percent. The net cash flow in Year 0 is $ ; the net cash flow in Year 1 is $ ; the net cash flow in Year 2 is $ ; and the net cash flow in Year 3 is $ . The NPV for this project is $ . (Do not include the dollar signs ($). Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places. (e.g., 32.16))
Save your time - order a paper!
Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines
Order Paper Now