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Quad Enterprises is considering a new three - year expansion project that requires an initial fixed asset investment of $ 2 . 3 7 million.

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.37 million. The fixed asset falls into the three-year MACRS class (MACRS schedule). The project is estimated to generate $1,755,000 in annual sales, with costs of $656,000. The project requires an initial investment in net working capital of $340,000, and the fixed asset will have a market value of $315,000 at the end of the project.
a. If the tax rate is 24 percent, what is the projects Year 0 net cash flow? Year 1? Year 2? Year 3?(A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to two decimal places, e.g.,1,234,567.89.)
b. If the required return is 9 percent, what is the project's NPV?(Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to two decimal places, e.g.,1,234,567.89.)

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