Cochrane, Inc., is considering a new three$-$year expansion project that requires an initial

fixed asset investment of $$2\mathrm{.}55$ million. The fixed asset falls into the three$-$year MACRS

class $($MACRS Table$).$ The project is estimated to generate $$2,300,000$ in annual sales,

with costs of $$1,290,000.$ The project requires an initial investment in net working capital

of $$165,000,$ and the fixed asset will have a market value of $$190,000$ at the end of the

project. Assume that the tax rate is $35$ percent and the required return on the project is $7$

percent.

Requirement $1$:

What is the net cash flow of the project for the following years? $($Do not include the

dollar signs $($$$).$Negative amounts should be indicated by a minus sign.Enter your

answers in dollars, not millions of dollars $($e$.$g$.,1,234,567).$ Round your answers to $2$

decimal places $($e$.$g$.,32\mathrm{.}16).)$

Requirement $2$:

What is the NPV of the project? $($Do not include the dollar sign $($$$).$ Enter your answer

in dollars, not millions of dollars $($e$.$g$.,1,234,567).$ Round your answer to $2$ decimal

places $($e$.$g$.,32\mathrm{.}16).)$