H. Cochran, Inc., is considering a new three-year

expansion project that requires an initial fixed asset investment of $2.15

million. The fixed asset will be depreciated straight-line to zero over its threeyear

tax life, after which time it will be worthless. The project is estimated to

generate $2.23 million in annual sales, with costs of $1.25 million.

If suppose the required

return on the project is 14 percent. What is the projects NPV?