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Quad Enterprises is considering a new three-year expansion project t initial fixed asset investment of $2.32 million. The fixed asset will straight-line to zero over

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Quad Enterprises is considering a new three-year expansion project t initial fixed asset investment of $2.32 million. The fixed asset will straight-line to zero over its three-year tax life, after which time it will be project is estimated to generate $1.735 million in annual sales, with cos The project requires an initial investment in net working capital of $25 fixed asset will have a market value of $180,000 at the end of the projec 21 percent. a. What is the project's Year O net cash flow? Year 1? Year 2? Year 3? (Do intermediate calculations. Enter your answers in dollars, not millions e.g., 1,234,567. A negative answer should be indicated by a minus si b. If the required return is 12 percent, what is the project's NPV? (Do noti intermediate calculations and round your answer to 2 decimal place es Year 0 Year 1 Year 2 Year 3 NPV $ 1 $ $ $ $ 1,019,550 1,019,550 1,019,550 128,787 128,787.07 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 is 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 O net cash flow? Year 1? Year 2? Year 3? (Do not round intermediate calculations. Enter your answers in dollars, not millions of dollars, e.g., 1,234,567. A negative answer should be indicated by a minus sign.) b. If the required return is 12 percent, what is the project's NPV? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) $ Year Year 1 Year 2 Year 3 NPV $ 1,019,550 1,019,550 1,019,550 128,787 128,787.07 $ | $

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