Esfandairi Enterprises is considering a new three$-$year expansion project that requires an initial fixed asset investment of $$2,400,000.$ The fixed asset will be depreciated straight$-$line to zero over its three$-$year tax life. The project is estimated to generate $$2,560,000$ in annual sales, with costs of $$1,550,000.$ The project requires an initial investment in net working capital of $$164,000,$ and the fixed asset will have a market value of $$199,000$ at the end of the project. Assume that the tax rate is $25$ percent and the required return on the project is $10$ percent.

b

What are the net cash flows of the project each year?