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Quad Enterprises is considering a new three-year expansion project that requires an Initial fixed asset Investment of $2.33 million. The fixed asset will be depreciated

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Quad Enterprises is considering a new three-year expansion project that requires an Initial fixed asset Investment of $2.33 million. The fixed asset will be depreciated stralght-line to zero over its three-year tax life. The project is estimated to generate $1,735,000 in annual sales, with costs of $645,000. The project requires an initial Investment In net working capital of $300,000, and the fixed asset will have a market value of $255,000 at the end of the project. a. If the tax rate is 25 percent, what is the project's Year O net cash flow? Year 1? Year 2? Year 3? (Do not round Intermediate calculations and enter your answers in dollars, not millions of dollars, e.g., 1,234,567. A negative answer should be indicated by a minus sign.) b. If the required return is 9 percent, what is the project's NPV? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Year 0 cash flow Year 1 cash flow Year 2 cash flow Year 3 cash flow b. NPV

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