Esfandairi Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.18 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life. The project is estimated to generate $1.645 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 Project and asset live 12% 3 Initial investment in NWC $250,000 $180,000 Fixed asset value at end (Use cells A6 to B13 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.) 9 Output area: 1 Aftertax salvage value 2 Sell equipment B Taxes 4 Aftertax salvage value 5 6 7 Sales 8 Costs 9 Depreciation CDT Year O $180,000 37,800 $142,200 + Year 1 Year 2 $1,645,000 $1,645,000 $610,000 726,667 $610,000 726,667 Year 3 $1,645,000 $610,000 726,667 cano c can