Down Under Boomerang, Inc., is considering a 3-year expansion project that requires an initial fixed asset investment of $2.29 million. The fixed asset falls into the 3-year MACRS class. The project is estimated to generate $1,175,000 in annual sales, with costs of $624,000. The project requires an initial investment in net working capital of $260,000, and the fixed asset will have a market value of $195,000 at the end of the project.

21% Tax Rate

9% required return

Year 0 cash flow- Year 1 cash flow- Year 2 cash flow- Year 3 cash flow- NPV-