Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / H. Cochran Inc is considering a new three-year expansion project that requires an initial ...

H. Cochran Inc is considering a new three-year expansion project that requires an initial fixed asset investment of $2520000 The fixed asset will be depreciated straightline to zero over its

H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,520,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life. The project is estimated to generate $2,290,000 in annual sales, with costs of $1,280,000. The project requires an initial investment in net working capital of $164,000, and the fixed asset will have a market value of $189,000 at the end of the project. Assume that the tax rate is 40 percent and the required return on the project is 7 percent.

  

What are the net cash flows of the project each year? (A negative answer should be indicated by a minus sign. Enter your answers in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)

Year Cash Flow
0 $
1  
2  
3  
 

  
What is the NPV of the project? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
  
NPV            $

I NEED THE 4 CASH FLOWS AND THE NPV PLEASE

 

Apr 04 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions