Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.9 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life. The project is estimated to generate $2,190,000 in annual sales, with costs of $815,000. The project requires initial investment in net working capital of $300,000, and the fixed asset will have a market value of $210,000 at the end of the project. What is the project's Year 0 net cash flow? Year 1? Year 2? Year 3? The tax rate is 21 percent. If the required return is 12 percent, what is the project's NPV?

Asset investment $ 2,900,000

Estimated annual sales $2,190,000

Costs $815,000

Net working capital $300,000

Pretax salvage value $210,000

Tax rate 21%

Project and asset life 3

Required return 12%

Complete the following analysis. Must use exel formulas to calculate the NPV

Aftertax salvage value

sell equipment ______

Taxes __________

Aftertax cash flow _______

Sales ___________ ___________ _____________

Costs ___________ _________ __________

Depreciation __________ __________ __________

EBT __________ ____________ __________

Taxes _________ ____________ __________

Net income _________ ___________ ___________

Capital spending __________

Net working capital __________

OCF _________

Net cash flow __________

NPV __________