H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset...

H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,580,000. The fixed asset falls into the three-year MACRS class (MACRS Table). The project is estimated to generate $2,310,000 in annual sales, with costs of $1,300,000. The project requires an initial investment in net working capital of $166,000, and the fixed asset will have a market value of $191,000 at the end of the project. Assume that the tax rate is 30 percent and the required return on the project is 7 percent. What is the net cash flow of the project each year?

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ekkarill92 answered 9 months ago

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