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Problem 9 - 1 0 Calculating Project NPV [ LO 2 ] Esfandairi Enterprises is considering a new three - year expansion project that requires

Problem 9-10 Calculating Project NPV [LO 2]
Esfandairi Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2,710,000. 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 $3,370,000 in annual sales, with costs of $2,190,000. Assume the tax rate is 24 percent and the required return on the project is 12 percent. What is the project's NPV?
Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.
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