1..Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $6.2 million. The fixed asset falls into the 3-year MACRS class (MACRS Table) and will have a market value of $483,000 after 3 years. The project requires an initial investment in net working capital of $690,000. The project is estimated to generate $5,520,000 in annual sales, with costs of $2,208,000. The tax rate is 32 percent and the required return on the project is 18 percent.

cash flow yr 0: -6890000, yr 1: 2913427, year 2: 3134048, year 3:3711445,

whats the NPV?

2..Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $6.048 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 $470,400. The project requires an initial investment in net working capital of $672,000. The project is estimated to generate $5,376,000 in annual sales, with costs of $2,150,400. The tax rate is 31 percent and the required return on the project is 11 percent.

Required:
(a)	What is the project's year 0 net cash flow?
	(Click to select)-6,048,000-7,056,000-6,720,000-7,392,000-6,384,000

(b)	What is the project's year 1 net cash flow?
	(Click to select)2,850,6242,708,0933,135,6862,993,1552,565,562

(c)	What is the project's year 2 net cash flow?
	(Click to select)2,850,6242,993,1552,708,0932,565,5623,135,686

(d)	What is the project's year 3 net cash flow?
	(Click to select)3,654,8403,462,4804,039,5603,847,2004,231,920

(e)	What is the NPV?
	(Click to select)1,023,540-1,196,336918,112974,8002,652,333