1. Calculating Project OCF [LO1] Esfandairi Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.18 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 $1.645 million in annual sales, with costs of $610,000. If the tax rate is 21 percent, what is the OCF for this project?

2. Calculating Project NPV [LO1] In the previous problem, suppose the required return on the project is 12 percent. What is the projects NPV?

3. Calculating Project Cash Flow from Assets [LO1] In the previous problem, suppose the project requires an initial investment in net working capital of $250,000, and the fixed asset will have a market value of $180,000 at the end of the project. What is the projects Year 0 net cash flow? Year 1? Year 2? Year 3? What is the new NPV?

4. NPV and MACRS [LO1] In the previous problem, suppose the fixed asset actually falls into the three-year MACRS class. All the other facts are the same. What is the projects Year 1 net cash flow now? Year 2? Year 3? What is the new NPV?

5. Excel please and I will give thumb up when you answer all questions immediately