Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.32 million. The fixed asset falls into the three-year MACRS class (MACRS schedule). 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 21percent.

a.What is the project's Year 0 net cash flow? Year 1? Year 2? Year 3?(A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers in dollars, not millions of dollars,rounded to 2 decimal places, e.g., 1,234,567.89.)b.If the required return is 12 percent, what is the project's NPV?(Do not round intermediate calculations and enter your answers in dollars, not millions of dollars,rounded to 2 decimal places, e.g., 1,234,567.89.)