1. (Capital budgeting; Investment appraisal} Phone Home, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $4.2 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $3,100,000 in annual sales, with costs of $990,000. The tax rate is 35 percent. (1) What is the Operating Cash Flow for this project? (2} Suppose the required return on the project is 12 percent. What is The project's NPV? [3) Suppose the project requires an initial investment in net working capital of $300,000, and the fixed asset will have a market 1value of $210,000 at the end of the project. \"That is the project's year 0 net cash ow? Year 1? Year 2? Year 3? What is the new NPV