Down Under Boomerang, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,700,000 (after tax). The fixed asset will be depreciated straight-line to zero over its three-year tax life and then have no salvage value. Last year, a market research study for the new product cost \$2,000,000. If the company goes ahead with the proposed product, it will have an effect on the company's net working capital. The project will require a $280,000 increase in inventory and $100,000 increase in accruals at t=0. At t=3, the net working capital will be recovered after the project is completed. The rax rate is 35 percent and the required return is 12 percent. What is the project's Year 0 initial investment? $4,880,000$2,980,000$4,700,000$2,880,000$2,620,000