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

Initlal fixed asset investment of $$2\mathrm{.}29$ million. The fixed asset will be depreclated

straight$-$IIne to zero over Its $3-$year tax Iffe. The project is estimated to generate

$$1,715,000$ in annual sales, with costs of $$625,000.$ The project requires an Intital

Investment in net working capital of $$260,000,$ and the fixed asset wlll have a market

value of $$195,000$ at the end of the project.

a$.$ If the tax rate is $21$ percent, what is the project's Year $0$ net cash flow? Year $1?$ Year $2?$

Year $3?($Do not round Intermedlate calculations and enter your answers in dollars,

not millions of dollars, e$.$g$.,1,234,567.$ A negative answer should be Indlcated by a

minus sign.$)$

b$.$ If the required return is $9$ percent, what is the project's NPV$?($Do not round

Intermedlate calculations and enter your answer in dollars, not mllilons of dollars,

rounded to $2$ decimal places, e$.$g$.,1,234,567\mathrm{.}89.)$