9. 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, after which time it will be worthless. The project is estimated to generate $2,190,000 in annual sales, with costs of $815,000. If the tax rate is 35 percent.

11. In the previous problem, supposethe 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? What is the new NPV?