Quad Enterprises is considering a new three$-$year expansion

project that requires an initial fixed asset investment of $$2\mathrm{.}28$

million. The fixed asset falls into the three$-$year MACRS

class$($MACRS schedule$).$ The project is estimated to generate

$$1,750,000$ in annual sales, with costs of $$652,000.$ The project

requires an initial investment in net working capital of $$330,000,$

and the fixed asset will have a market value of $$300,000$ at the end

of the project.