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H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of exist2, 430,000. The fixed asset will be

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H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of exist2, 430,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life. The project is estimated to generate exist2, 260,000 in annual sales, with costs of exist1, 250,000. The project requires an initial investment in net working capital of exist161,000, and the fixed asset will have a market value of exist186,000 at the end of the project. Assume that the tax rate is 40 percent and the required return on the project is 8 percent. What are the net cash flows of the project each year? (A negative answer should be indicated by a minus sign. Enter your answers in dollars, not millions of dollars, e.g., 1, 234, 567. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) What is the NPV of the project? (Enter your answer in dollars, not millions of dollars, e.g., 1, 234, 567. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

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