Esfandairi Enterprises is considering a new three$-$year$$expansion project that requires an initial fixed asset investment of $$2\mathrm{.}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\mathrm{.}645$ million$$in annual sales, with costs of $$610,000.$ The tax rate is $21$ percent and the required return is $12$ percent.$$Suppose$$the project requires an initial investment in net working$$capital of $$250,000,$ and$$the fixed asset will have a market value of $$180,000$ at the end of the project. What is$$the project$$s Year $0$ net cash flow? Year $1?$ Year $2?$ Year $3?$ What is the NPV$?$

Input area:

Asset investment $$2,180,000$

Estimated annual sales $$1,645,000$

Costs $$610,000$

Tax rate $21\%$

Required return $12\%$

Project and asset live $3$

Initial investment in NWC $$250,000$

Fixed asset value at end $$180,000$

$($Use cells A$6$ to B$13$ from the given information to complete this question. You must use the built$-$in Excel function to answer this question. Taxes on the salvage value should be negative for a tax liability and positive for a tax credit.$)$

Output area:

Aftertax salvage value $$

Sell equipment $$

Taxes $$

Aftertax salvage value $$

$$

$$ Year $0$ Year $1$ Year $2$ Year $3$

Sales $$

Costs $$

Depreciation $$

EBT $$

Taxes $$

Net income $$

Capital spending $$

Net working capital $$

OCF $$

Total cash flow $$

NPV