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, after which time it will be worthless. The project is estimated to generate $1.645 million in annual sales, with costs of $610,000. The tax rate is 21 percent. If the required return is 12 percent, what is the project's NPV? Input area: Asset investment $2,180,000 Estimated annual sales $1,645,000 Costs $610,000 Tax rate 21% Project and asset life Required return 3 12% + Sales Costs Depreciation $1,645,000 $610,000 726,667 EBT $308,333 Taxes 64,750 Net income $243,583 OCF $970,250 NPV $2,180,000