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Quad Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment of $2.5 million. The fixed asset falls into the

Quad Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment of $2.5 million. The fixed asset falls into the 3-year MACRS class (MACRS Table) and will have a market value of $197,400 after 3 years. 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 21 percent and the required return on the project is 16 percent. What is the project's year 0 net cash flow? What is the project's year 1 net cash flow? What is the project's year 2 net cash flow? What is the project's year 3 net cash flow? What is the NPV?

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