new 3-year expansion project that requires an initial fixed asset investment of $2.34 million. The fixed asset falls into the 3-year MACRS class. (MACRS schedule) The project is estimated to generate $1,740,000 in annual sales, with costs of $644,000. The project requires an initial investment in net working capital of $310,000, and the fixed asset will have a market value of $270,000 at the end of the project