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Esfandairi Enterprises is considering a new three$-$year expansion project that requires an

initial fixed asset investment of $$2\mathrm{.}3$ million. The fixed asset qualifies for $100$ percent

bonus depreciation in the first year. The project is estimated to generate $$1,720,000$ in

annual sales, with costs of $$628,000.$ The project requires an initial investment in net

working capital of $$270,000,$ and the fixed asset will have a market value of $$210,000$ at

the end of the project.

a$.$ If the tax rate is $22$ percent, what is the project's Year O net cash flow? Year $1?$ Year $2?$

Year $3?($A negative answer should be indicated by a minus sign. Do not round

intermediate calculations and enter your answers in dollars, not millions of dollars,

e$.$g$.,1,234,567.)$

b$.$ If the required return is $10$ percent, what is the project's NPV$?($Do not round

intermediate calculations and enter your answers in dollars, not millions of dollars,

rounded to two decimal places, e$.$g$.,1,234,567\mathrm{.}89.)$

a$.$ Year $0$ cash flow

a$.$ Year $1$ cash flow

a$.$ Year $2$ cash flow

a$.$ Year $3$ cash flow

b$.$ NPV