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 Estimated annual sales Costs Tax rate Project and asset life Required return Output area: (Use cells A6 to B10 from the given information to complete this question.) Sales Costs Depreciation EBT Taxes Net income > $2,180,000 $1,645,000 $610,000 Graded Worksheet 21% 3 12%

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: (Use cells A6 to B10 from the given information to complete this question.) Output area