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Quad Enterprises is considering a new three year expansion project that requires an initial fixed asset investment of 2.32 million. The fixed asset will be

Quad Enterprises is considering a new three year expansion project that requires an initial fixed asset investment of 2.32 million. The fixed asset will be depreciated straight line to zero over its three year tax life, after which time it will be worthless. The project estimated to generate 1.735 million in annual sales, with costs of 650,000. The project requires an initial investment in net working capital of $250,000, and the fixed asset will have a market value of $180,000 at the end of the project. The tax rate is 21 percent.

A) what is the project's year 0 net cash flow? year 1? year 2? year 3?

B) If the required return is 12 percent, what is the project's NPV? (Round answer 2 decimal places)

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