Esfandairi Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.35 million. The fixed asset qualifies for 100 percent bonus depreciation in the first year. The project is estimated to generate $1,745,000 in annual sales, with costs of $648,000. The project requires an initial investment in net working capital of $320,000, and the fixed asset will have a market value of $285,000 at the end of the project.

If the tax rate is 22 percent, what is the projects Year 0 net cash flow? Year 1? Year 2? Year 3?

Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to two decimal places, e.g., 32.16.

If the required return is 11 percent, what is the project's NPV?

Note: Do not round intermediate calculations and round your answer to two decimal places, e.g., 32.16.

\begin{tabular}{|l|l|} \hline a. Year 0 cash flow & \\ \hline Year 1 cash flow & \\ \hline Year 2 cash flow & \\ \hline Year 3 cash flow & \\ \hline b. NPV & \\ \hline \end{tabular}