Esfandairi Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2,350,000. The fixed asset will be depreciated straight line to zero over three your tax life. The project is estimated to generate $2,470,000 in annual sales, with cost of $1,490,000. The project requires an initial investment and networking capital of $162,000, and the fixed asset will have a market value of $197,000 at the end of the project. Assume that the tax rate is 24% and the required return on the project is 10%. A. What are the net cash flows of the project each year? Be. What is the NPV of the project?

Estandairi Enterprises is consideting a new three-yeat exponsion project that requires an inital fixed 05set investment of $2,350,000. The fixed asset will be depreciated straight-line to zero over its three-year tax iffe. The project is estimated to generote $2.470,000 in onnual sales, with costs of $1,490,000. The project requires an initial Investment in net working capital of $162,000, ond the fixed asset will have a morket value of 5197,000 at the end of the project. Assume that the tox rate is 24 percent and the required teturn on the projectis 10 percent. a. Whot are the net cash flows of the project each year? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.9, 32 . b. What is the NPY of the project? Note: Do not round intermediate calculations and round your answer to 2 decimal places, 0.932.16