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5 Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.41 million. The fixed asset will be

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5 Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.41 million. The fixed asset will be depreciated straight line to zero over its three-year tax life. The project is estimated to generate $1,775.000 in annual sales, with costs of $685,000. The project requires an initial investment in net working capital of $380,000, and the fixed asset will have a market value of $3/5,000 at the end of the project ooka. If the tax rate is 23 percent, what is the project's Year O net cash flow? Year 1? Year 2? Year 3? (Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, e.g., 1,234,567. A negative answer should be indicated by a rint ences minus sign.) b. If the required return is 9 percent, what is the project's NPV? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.. 32.16.) a Year 0 cash flow Year 1 cash flow Year 2 cash flow Year 3 cash flow b NPV

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