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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 will be depreciated straightline to zero over its three-year tax life. The project is estimated to generate $1,755,000 in annual sales, with costs of $665,000. The project requires an initial investment in net working capital of $340,000, and the fixed asset will have a market value of $315,000 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?(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 9 percent, what is the project's NPV?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.)
\table[[a. Year 0 cash flow,],[a. Year 1 cash flow,],[a. Year 2 cash flow,],[a. Year 3 cash flow,],[b. NPV,]]
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