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Esfandairi Enterprises is considering a new 3 - year expansion project that requires an initial fixed asset investment of $ 2 . 2 9 million.

Esfandairi Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment of $2.29 million. The fixed asset falls into the 3-year MACRS class.(MACRS schedule)The project is estimated to generate $1,715,000 in annual sales, with costs of $624,000. The project requires an initial investment in net working capital of $260,000, and the fixed asset will have a market value of $195,000 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?(A negative answer should be indicated by a minus sign.Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to two decimal places, e.g.,1,234,567.89.)b. If the required return is 9 percent, what is the project's NPV?(Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to two decimal places, e.g.,1,234,567.89.)
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