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Esfandairi Enterprises is considering a new three - year expansion project that requires an initial fixed asset investment of $ 2 . 1 8 million.

Esfandairi Enterprises is considering a new three-yearexpansion project that requires an initial fixed asset investment of $2.18 million.The fixed asset will be depreciated straight-line to zero over its three-year tax life. The project is estimated to generate $1.645 millionin annual sales, with costs of $610,000. The tax rate is 21 percent and the required return is 12 percent.Supposethe project requires an initial investment in net workingcapital of $250,000, andthe fixed asset will have a market value of $180,000 at the end of the project. What isthe projects Year 0 net cash flow? Year 1? Year 2? Year 3? What is the NPV?(I tried to do it but it said it wasn't right!, also please provide the formula input, example :B2+B3 and values that I should get!) Thanks!
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