$($Please calculate on excel! thank you!$)$ #$7.$ A company is considering a new three$-$year expansion project that requires an initial fixed asset investment

of $$2\mathrm{.}18$ million. The fixed asset will be depreciated straight$-$line to zero over its three$-$year tax life, after which

time it will be worthless. The project is estimated to generate $$1\mathrm{.}645$ million in annual sales, with costs of

$$610,000.$ Assume a tax rate of $21\%.$ What is the OCF for this project?

#$8.$ Assume that the project in #$7$ above requires an additional investment in net working capital of $$250,000,$

and the fixed asset will have a market value of $$180,000$ at the end of the project. What is the project's year $0$

net cash flow? Year $1?$ Year $2?$ Year $3?$ What is the new NPV$?$ Assume a discount rate of $12\%$