P10-11 Calculating Project Cash Flow from Assets [LO1] Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial…

P10-11 Calculating Project Cash Flow from Assets [LO1]Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $3.078 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will have a market value of $239,400. The project requires an initial investment in net working capital of $342,000. The project is estimated to generate $2,736,000 in annual sales, with costs of $1,094,400. The tax rate is 31 percent and the required return on the project is 10 percent. The NPV for this project is

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