Problem 1What is the NPV of the project?

Belmont Steaks, Inc. is considering a new three-year expansion project that will require initial fixed asset investment of $2.4 million. The fixed asset will be depreciated by straight-line to zero over its three-year tax life, after which it will be worthless. The project is estimated to generate $2,050,000 in annual sales, with costs of $950,000. The tax rate is 40% and the required return is 12%