Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of 2.37 million. The fixed asset qualifies for 100 percent bonus depreciation in the first year. The project is estimated to generate 1,780,000 in annual sales, with cost of 676,000. The project requires an initial investment in net working capital of 390,000, and the fixed asset will have a market value of 390,000 at the end of the project.

a. If the tax rate is 24 percent, what is the projects Year 0 net cash flow? Year 1? Year 2? Year 3?

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