5)

Halloween Fits Unlimited is considering a new 3-year store expansion project that requires an initial fixed asset investment of $4.4 million. The fixed asset falls into the 3-year MACRS class (MACRS Table) and will have a market value of $340,200 after 3 years. The project requires an initial investment in net working capital of $486,000. The project is estimated to generate $3,888,000 in annual sales, with costs of $1,555,200. The tax rate is 34 percent and the required return on the project is 16 percent. (Do not round your intermediate calculations.)

Required:
(a)	What is the project's year 0 net cash flow?
	(Click to select) -4,886,000 -1,834,438 -4,641,700 -4,397,400 -1,936,352

(b)	What is the project's year 1 net cash flow?
	(Click to select) 1,936,352 1,834,438 2,038,265 2,242,091 2,140,178

(c)	What is the project's year 2 net cash flow?
	(Click to select) 2,204,620 2,094,389 2,314,851 1,834,438 2,140,178

(d)	What is the project's year 3 net cash flow?
	(Click to select) 2,582,591 2,453,462 2,140,178 2,324,332 2,711,721

(e)	What is the NPV?
	(Click to select) 164,073.49 172,277 123,847 155,870 9,463,830

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