Esfandairi Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2,470,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life. The project is estimated to generate $3,210,000 in annual sales, with costs of $2,210,000. The project requires an initial investment in net working capital of $156,000, and the fixed asset will have a market value of $191,000 at the end of the project. Assume that the tax rate is 21 percent and the required return on the project is 9 percent.

a. what are the net cash flows of the project each year? (0-5)

b. what is the NPV of the project?