C. Suppose le 3. Calculating Project NPV Down Under Boomerang, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $3.75 million. The fixed asset will be depreciate straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $3.07 million in annual sales, with costs of $1.51 million. The tax rate is 21 percent and the required return is 10 percent. What is the project's NPV? In the provinus problem, suppose the project requires