Down Under Boomerang, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $2.37 million. The fixed asset falls into the 3-year MACRS class (MACRS schedule). The project is estimated to generate $1,765,000 in annual sales, with costs of $664,000. The project requires an initial investment in net working capital of $360,000, and the fixed asset will have a market value of $345,000 at the end of the project.

a.	If the tax rate is 21 percent, what is the projects Year 0 net cash flow? Year 1? Year 2? Year 3?
b.	If the required return is 11 percent, what is the project's NPV?