Esfandairi Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.18 million. The fixed asset falls into the three-year MACRS class. 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? 3 4 5 6 7 8 c 1 1 1 1 1 1 1 1, (Use cells A6 to B16 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.) McGraw Hill Excel Question - Saved Search for tools, help, and more (c, tion +Q ) File Home Insert Draw Formulas Data Review View Help Editing Comments & Calibri (Body) 11 B General A1 Accessibility tab summary: Students please use the information below to complete the question completing the required cells. Given Output area: A B C F G H I K 22 23 24 25 26 27 28 29 30 31 Sales Costs Depreciation EBT Taxes Net income Fixed asset book value in three years 33 Aftertax salvage value 34 35 36 Sell equipment Taxes 37 Aftertax salvage value Capital spending 38 Net working capital 39 OCF 40 41 Total cash flow NPV \begin{tabular}{|c|c|c|c|} \hline & Year 1 & Year 2 & Year 3 \\ \hline & $1,645,000 & $1,645,000 & $1,645,000 \\ \hline & $610,000 & $610,000 & $610,000 \\ \hline & 726,667 & 726,667 & 726,667 \\ \hline V & $308,333 & $308,333 & $308,333 \\ \hlineV & 64,750 & 64,750 & 64,750 \\ \hline & $243,583 & $243,583 & $243,583 \\ \hline \end{tabular} 42 43 44 45 Students: The scratchpad area is for you to do any additional work you need to solve this question or can be used to show your work. Esfandairi Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.18 million. The fixed asset falls into the three-year MACRS class. 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? 3 4 5 6 7 8 c 1 1 1 1 1 1 1 1, (Use cells A6 to B16 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.) McGraw Hill Excel Question - Saved Search for tools, help, and more (c, tion +Q ) File Home Insert Draw Formulas Data Review View Help Editing Comments & Calibri (Body) 11 B General A1 Accessibility tab summary: Students please use the information below to complete the question completing the required cells. Given Output area: A B C F G H I K 22 23 24 25 26 27 28 29 30 31 Sales Costs Depreciation EBT Taxes Net income Fixed asset book value in three years 33 Aftertax salvage value 34 35 36 Sell equipment Taxes 37 Aftertax salvage value Capital spending 38 Net working capital 39 OCF 40 41 Total cash flow NPV \begin{tabular}{|c|c|c|c|} \hline & Year 1 & Year 2 & Year 3 \\ \hline & $1,645,000 & $1,645,000 & $1,645,000 \\ \hline & $610,000 & $610,000 & $610,000 \\ \hline & 726,667 & 726,667 & 726,667 \\ \hline V & $308,333 & $308,333 & $308,333 \\ \hlineV & 64,750 & 64,750 & 64,750 \\ \hline & $243,583 & $243,583 & $243,583 \\ \hline \end{tabular} 42 43 44 45 Students: The scratchpad area is for you to do any additional work you need to solve this question or can be used to show your work