2 Esfandairi Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.18 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 $1.645 million in annual sales, with costs of $610,000. The tax rate is 21 percent. If the required return is 12 percent, what is the project's NPV? 3 4 Input area: 5 6 Asset investment $2,180,000 7 Estimated annual sales $1,645,000 8 Costs $610,000 9 Tax rate 21% 3 12% 10 Project and asset life 11 Required return 12 13 (Use cells A6 to B10 from the given information to complete this question.) 14 15 Output area: 16 17 Sales 18 Costs 19 Depreciation 20 EBT 21 Taxes 22 Net income 23 OCF 24 NPV 25 26