3. Calculating Project NPV Down Under Boomerang, Inc. is considering a new 3-year expansion project that requires an initial fixed asset investment of $1.42 million. The fixed asset will be depreciated straight-line to zero wer its 3-year tax life, after which it will be worthless. The project is estimated to generate $1.09 million in annual sales, with costs of $475,000. The tax rate is 25 percent and the required return is 12 percent. What is the project's NPV? 4. Calculating Project Cash Flow from Assets In the previous problem. suppose the project requires an initial investment in net working capital of $250,000 and the fixed asset will have a market value of $230,000 at the end of the project. What is the project's Year Onet cash flow? Year 17 Year 2? Year 37 What is the new NPV? 5. NPV and Modified ACRS In the previous problem. suppose the fixed asset actually falls into the 3-year MACRS class. All the other facts are the same. What is the project's Year 1 net cash flow now? Year 27 Year 32 What is the new NPV