Quad Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment of $2.538 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will have a market value of $197,400. The project requires an initial investment in net working capital of $282,000. The project is estimated to generate $2,256,000 in annual sales, with costs of $902,400. The tax rate is 22 percent and the required return on the project is 11 percent.

(a) What is the project's Year 0 net cash flow?

(b) What is the project's Year 1 net cash flow?