Fun With Finance is considering a new 3-year expansion project that requires an initial fixed asset investment of $3.726 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will have a market value of $289,800. The project requires an initial investment in net working capital of $414,000. The project is estimated to generate $3,312,000 in annual sales, with costs of $1,324,800. The tax rate is 30 percent and the required return on the project is 13 percent.

Required:

(a) What is the project's year 0 net cash flow?

(b) What is the project's year 1 net cash flow?

(c) What is the project's year 2 net cash flow?

(d) What is the project's year 3 net cash flow?

(e) What is the NPV?