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Esfandairi Enterprises is considering a new three - year expansion project that requires an initial fixed asset investment of $ 2 . 3 7 million.

Esfandairi Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.37 million. The fixed asset qualifies for 100 percent bonus depreciation in the first year. The project is estimated to generate $1,780,000 in annual sales, with costs of $676,000. The project requires an initial investment in net working capital of $390,000, and the fixed asset will have a market value of $390,000 at the end of the project.
a. If the tax rate is 24 percent, what is the project's Year 0 net cash flow? Year 1? Year 2? Year 3?
Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to two decimal places, e.g.,32.16.
b. If the required return is 10 percent, what is the project's NPV?
Note: Do not round intermediate calculations and round your answer to two decimal places, e.g.,32.16.
\table[[a. Year 0 cash flow,],[Year 1 cash flow,],[Year 2 cash flow,],[Year 3 cash flow,],[b. NPV,$
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