Problem $9-11$ Calculating Project Cash Flow from Assets $[$LO $22]$

Esfandairi Enterprises is considering a new three$-$year expansion project that requires an initial fixed asset investment of $$2,350,000.$ The

fixed asset will be depreciated straight$-$line to zero over its three$-$year tax life. The project is estimated to generate $$2,290,000$ in annual

sales, with costs of $$1,310,000.$ The project requires an initial investment in net working capital of $$160,000,$ and the fixed asset will have a

market value of $$195,000$ at the end of the project. Assume that the tax rate is $21$ percent and the required return on the project is $10$

percent.

a$.$ What are the net cash flows of the project each year?

Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers

to the nearest whole number, e$.$g$.,32.$

b$.$ What is the NPV of the project?

Note: Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$