H. Cochran Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2,330,000. The fixed asset falls into the three-year MACRS class (MACRS schedule). The project is estimated to generate $1,735,000 in annual sales, with costs of $640,000. The project requires an initial investment in net working capital of $300,000, and the fixed asset will have a market value of $255,000 at the end of the project.

a.	If the tax rate is 25 percent, what is the projects Year 0 net cash flow? Year 1? Year 2? Year 3? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to two decimal places, e.g., 32.16.)
b.	If the required return is 9 percent, what is the project's NPV? (Do not round intermediate calculations and round your answer to two decimal places, e.g., 32.16.)

a. Year 0 cash flow Year 1 cash flow Year 2 cash flow Year 3 cash flow b. NPV Property Class 5-Year Year 3-Year 7-Year 1 2 3 4 5 6 7 33.33% 44.45 14.81 7.41 20.00% 32.00 19.20 11.52 11.52 5.76 14.29% 24.49 17.49 12.49 8.93 8.92 8.93 4.46 8