8.8

Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $6.4 million. The fixed asset falls into the 3-year MACRS class (MACRS Table) and will have a market value of $499,800 after 3 years. The project requires an initial investment in net working capital of $714,000. The project is estimated to generate $5,712,000 in annual sales, with costs of $2,284,800. The tax rate is 33 percent and the required return on the project is 14 percent. (Do not round your intermediate calculations.)

Required:
(a)	What is the project's year 0 net cash flow?
	(Click to select)-6,758,300-2,700,138-7,114,000-2,850,146-6,402,600

(b)	What is the project's year 1 net cash flow?
	(Click to select)3,300,1692,850,1463,150,1612,700,1383,000,154

(c)	What is the project's year 2 net cash flow?
	(Click to select)3,073,2582,700,1383,396,7583,150,1613,235,008

(d)	What is the project's year 3 net cash flow?
	(Click to select)3,814,3764,005,0953,623,6583,150,1613,432,939

(e)	What is the NPV?
	(Click to select)610,62014,079,416552,466481,956581,542.72