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

Esfandairi Enterprises is considering a new three-year expansion project that requires an
initial fixed asset investment of $2.27 million. The fixed asset falls into the three-year
MACRS class (MACRS schedule). The project is estimated to generate $1,800,000 in
annual sales, with costs of $692,000. The project requires an initial investment in net
working capital of $430,000, and the fixed asset will have a market value of $450,000 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?(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.)
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