Cochrane, Inc., is considering a new three$-$year expansion project that requires an initial fixed asset investment of $$2,250,000.$ The fixed asset will be depreciated straight$-$line to zero over its three$-$year tax life, after which time it will be worthless. The project is estimated to generate $$2,200,000$ in annual sales, with costs of $$1,190,000.$ The project requires an initial investment in net working capital of $$155,000,$ and the fixed asset will have a market value of $$180,000$ at the end of the project. Assume that the tax rate is $40$ percent and the required return on the project is $10$ percent.

Requirement $1$:

What are the net cash flows of the project for the following years?

Requirement $2$:

What is the NPV of the project?