Esfandairi Enterprises $is$ considering a new three$-$year expansion project that requires $an$ initial fixed asset investment $of$ Esfandairi Enterprises is considering a new three$-$year expansion project that requires an initial fixed asset investment of $$2\mathrm{.}41$

million. The fixed asset qualifies for $100$ percent bonus depreciation in the first year. The project is estimated to generate

$$1,775,000$ in annual sales, with costs of $$672,000.$ The project requires an initial investment in net working capital of

$$380,000,$ and the fixed asset will have a market value of $$375,000$ at the end of the project.

a$.$ If the tax rate is $23$ percent, what is the project's Year $0$ net cash flow? Year $1?$ Year $2?$ Year $3?$

Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round

your answers to two decimal places, e$.$g$.,32\mathrm{.}16.$

b$.$ If the required return is $9$ percent, what is the project's NPV$?$

Note: Do not round intermediate calculations and round your answer to two decimal places, e$.$g$.,32\mathrm{.}16.$ Esfandairi Enterprises is considering a new three$-$year expansion project that requires an initial fixed asset investment of $$2\mathrm{.}41$

million. The fixed asset qualifies for $100$ percent bonus depreciation in the first year. The project is estimated to generate

$$1,775,000$ in annual sales, with costs of $$672,000.$ The project requires an initial investment in net working capital of

$$380,000,$ and the fixed asset will have a market value of $$375,000$ at the end of the project.

a$.$ If the tax rate is $23$ percent, what is the project's Year $0$ net cash flow? Year $1?$ Year $2?$ Year $3?$

Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round

your answers to two decimal places, e$.$g$.,32\mathrm{.}16.$

b$.$ If the required return is $9$ percent, what is the project's NPV$?$

Note: Do not round intermediate calculations and round your answer to two decimal places, e$.$g$.,32\mathrm{.}16.$

$$2,250,000.$ The fixed asset will $be$ depreciated straight$-$line $to$ zero over its three$-$year tax life. The project $is$ estimated $to$

generate $$2,370,000in$ annual sales, with costs $of$ $$1,410,000.$ The project requires $an$ initial investment $in$ net working capital

$of$ $$172,000,$ and the fixed asset will have a market value $of$ $$207,000at$ the end $of$ the project. Assume that the tax rate $is22$

percent and the required return $on$ the project $is11$ percent.

$a.$ What are the net cash flows $of$ the project each year?

Note: A negative answer should $be$ indicated $by$ a minus sign. $Do$ not round intermediate calculations and round

your answers $to$ the nearest whole number, $e.g.,32.$

$b.$ What $is$ the $NPVof$ the project?

Note: $Do$ not round intermediate calculations and round your answer $to2$ decimal places, $e.g.,32\mathrm{.}16.$