Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.32 million. The fixed asset qualifies for 100 percent bonus depreciation in the first year. 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 projects 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?

a.	Year 0
	Year 1
	Year 2
	Year 3
b.	NPV