Quad Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment of $5.94 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 $462,000. The project requires an initial investment in net working capital of $660,000. The project is estimated to generate $5,280,000 in annual sales, with costs of $2,112,000. The tax rate is 23 percent and the required return on the project is 9 percent.

What is the net cash flow in year 0? Year 1? year 2? and Year 3? What is the NPV?