Esfandairi Enterprises is considering a new three-year expansion project that requires an

initial fixed asset investment of $2.31 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 $1,725.000 in annual sales, with costs of $635,000 The tax rate is

23 percent and the required return on the project is 12 percent. What is the projects

NPV?