Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.32 million. The project is estimated to generate $1.735 million in annual sales, with costs of $650,000. The tax rate is 21%. suppose the fixed asset qualifies for 100 percent bonus depreciation in the first year. All the other facts are the same. What is the projects Year 1 net cash flow now? Year 2? Year 3? What is the new NPV?

Answer the Problem using excel.

OCF = (R - E)(1 - t) + tD