Esfandairi Enterprises is considering a new three$-$year expansion project that requires an

initial fixed asset investment of $$2\mathrm{.}27$ million. The fixed asset will be depreciated straight$-$

line to zero over its three$-$year tax life. The project is estimated to generate $$1,800,000$

in annual sales, with costs of $$710,000.$ 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,

e$.$g$.,1,234,567.$

b$.$ If the required return is $10$ percent, what is the project's NPV$?($Do not round

intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$