3 Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.9 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life. The project is estimated to generate $2,190,000 in annual sales, with costs of $815,000. The project requires an initial investment in net working capital of $300,000, and the fixed asset will have a market value of $210,000 at the end of the project. What is the project's Year 0 net cash flow? Year 1? Year 2? Year 3? The tax rate is 21 percent. If the required return is 12 percent, what is the project's NPV? 4 5 67 Asset investment $ 2,900,000 Estimated annual sales $ 2,190,000 8 Costs $ 815,000 9 Net working capital $ 300,000 10 Pretax salvage value 210,000 11 Tax rate 21% 12 Project and asset life 3 13 Required return 12% 14 15 16 Complete the following analysis. Do not hard code values in your calculations. You must use the built-in Excel function to calculate the NPV