Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.88 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life. The project is estimated to generate $2,140,000 in annual sales, with costs of $835,000. The project requires an initial investment in net working capital of $360,000, and the fixed asset will have a market value of $240,000 at the end of the project.

If the tax rate is 35 percent, what is the projects Year 0 net cash flow? Year 1? Year 2? Year 3?

If the required return is 10 percent, what is the project's NPV?