Esfandairl Enterprises is considering a new $3-$year expansion project that requires an

Inltial fixed asset Investment of $$2\mathrm{.}31$ million. The fixed asset qualifies for $100$ percent

bonus depreciation. The project is estimated to generate $$1,770,000$ in annual sales,

with costs of $$668,000.$ The project requires an initial investment in net working capltal

of $$370,000,$ and the fixed asset will have a market value of $$360,000$ at the end of the

project.

a$.$ If the tax rate is $22$ percent, what is the project's Year $0$ net cash flow? Year $1?$ Year $2?$

Year $3?($A negatlve answer should be Indicated by a minus sign. Do not round

intermedlate calculations and enter your answers in dollars, not millions of dollars,

e$.$g$.,1,234,567.)$

b$.$ If the required return is $12$ percent, what is the project's NPV$?($Do not round

Intermedlate calculations and enter your answer In dollars, not millilons of dollars,

rounded to two decimal places, e$.$g$.,1,234,567\mathrm{.}89.)$