Esfandairi Enterprises is considering a new $3-$year expansion project that requires an

initial fixed asset investment of $$2\mathrm{.}31$ million. The fixed asset will be depreciated straight$-$

line to zero over its $3-$year tax life. The project is estimated to generate $$1,725,000$ in

annual sales, with costs of $$635,000.$ The project requires an initial investment in net

working capital of $$280,000,$ and the fixed asset will have a market value of $$225,000$ 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 $3?($Do not round intermediate calculations 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

intermediate calculations and enter your answer in dollars, not millions of dollars,

rounded to $2$ decimal places, e$.$g$.,1,234,567\mathrm{.}89.)$