Down Under Boomerang, Inc., is considering a new $3-$year expansion project that Down Under Boomerang, Inc., is considering a new $3-$year expansion project that

requires an Initial fixed asset investment of $$2\mathrm{.}38$ million. The fixed asset will be

depreclated straight$-$IIne to zero over its $3-$year tax Ife. The project is estimated to

generate $$1,805,000$ in annual sales, with costs of $$715,000.$ The project requires an

InItlal Investment in net working capital of $$440,000,$ and the fixed asset will have a

market value of $$465,000$ at the end of the project.

a$.$ If the tax rate is $24$ percent, what is the project's Year $0$ net cash flow? Year $1?$ Year $2?$

Year $3?($Do not round Intermedlate calculatlons and enter your answers In dollars,

not millions of dollars, e$.$g$.,1,234,567.$ A negative answer should be Indicated by a

minus sign.$)$

b$.$ If the required return is $11$ percent, what is the project's NPV$?($Do not round

Intermedlate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

Answer is complete but not entirely correct.

requires an Initial fixed asset investment of $$2\mathrm{.}38$ million. The fixed asset will be

depreclated straight$-$IIne to zero over its $3-$year tax Ife. The project is estimated to

generate $$1,805,000$ in annual sales, with costs of $$715,000.$ The project requires an

InItlal Investment in net working capital of $$440,000,$ and the fixed asset will have a

market value of $$465,000$ at the end of the project.

a$.$ If the tax rate is $24$ percent, what is the project's Year $0$ net cash flow? Year $1?$ Year $2?$

Year $3?($Do not round Intermedlate calculatlons and enter your answers In dollars,

not millions of dollars, e$.$g$.,1,234,567.$ A negative answer should be Indicated by a

minus sign.$)$

b$.$ If the required return is $11$ percent, what is the project's NPV$?($Do not round

Intermedlate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

Answer is complete but not entirely correct. Show steps for year $3$ and NPV thansk!