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The UltimateFlying Disc Company considering a new expansion project that requires a fixed asset purchase of $300 that will be incurred today. The fixed asset is expected to last for 10 years and be worthless at the end of its useful life. The depreciable base is the entire amount of investment, and straight line depreciation will be used. The project is expected to generate $580 in cash flows per year and incur $305 in expenses per year, both starting in one year and continuing at the end of each year over the project life. IF the tax rate is 32% and the required rate of return is 8%, what is the net present value of the project? Project NPV $ Place your answer in dollars and cents. Work your analysis using at least 4 decimal places of accuracy. Notes on formatting: Do NOT include a dollar sign or a comma in your NPV. For example, an answer of one hundred twenty dollars and fifteen cents would be placed as 120.15. If applicable, indicate negative amounts with a minus sign in front of the number. I've finished the exam. SUBMIT ANSWER

The UltimateFlying Disc Company considering a new expansion project that requires a fixed asset purchase of $300 that will be incurred today. The fixed asset is expected to last for 10 years and be worthless at the end of its useful life. The depreciable base is the entire amount of investment, and straight line depreciation will be used. The project is expected to generate $580 in cash flows per year and incur $305 in expenses per year, both starting in one year and continuing at the end of each year over the project life. IF the tax rate is 32% and the required rate of return is 8%, what is the net present value of the project? Project NPV $ Place your answer in dollars and cents. Work your analysis using at least 4 decimal places of accuracy. Notes on formatting: Do NOT include a dollar sign or a comma in your NPV. For example, an answer of one hundred twenty dollars and fifteen cents would be placed as 120.15. If applicable, indicate negative amounts with a minus sign in front of the number. I've finished the exam. SUBMIT ANSWER

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter9: Capital Budgeting And Cash Flow Analysis
Section: Chapter Questions
Problem 17P
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The UltimateFlying Disc Company considering a new expansion project that requires a fixed asset purchase of $300 that will be incurred today. The fixed asset is expected to last for 10 years and be worthless at the end of its useful life. The depreciable base is the entire amount of investment, and straight line depreciation will be used. The project is expected to generate $580 in cash flows per year and incur $305 in expenses per year, both starting in one year and continuing at the end of each year over the project life. IF the tax rate is 32% and the required rate of return is 8%, what is the net present value of the project? Project NPV $ Place your answer in dollars and cents. Work your analysis using at least 4 decimal places of accuracy. Notes on formatting: Do NOT include a dollar sign or a comma in your NPV. For example, an answer of one hundred twenty dollars and fifteen cents would be placed as 120.15. If applicable, indicate negative amounts with a minus sign in front of the number. I've finished the exam. SUBMIT ANSWER
Transcribed Image Text:The UltimateFlying Disc Company considering a new expansion project that requires a fixed asset purchase of $300 that will be incurred today. The fixed asset is expected to last for 10 years and be worthless at the end of its useful life. The depreciable base is the entire amount of investment, and straight line depreciation will be used. The project is expected to generate $580 in cash flows per year and incur $305 in expenses per year, both starting in one year and continuing at the end of each year over the project life. IF the tax rate is 32% and the required rate of return is 8%, what is the net present value of the project? Project NPV $ Place your answer in dollars and cents. Work your analysis using at least 4 decimal places of accuracy. Notes on formatting: Do NOT include a dollar sign or a comma in your NPV. For example, an answer of one hundred twenty dollars and fifteen cents would be placed as 120.15. If applicable, indicate negative amounts with a minus sign in front of the number. I've finished the exam. SUBMIT ANSWER
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