Summer Tyme, Inc., is considering a new 2-year expansion project that requires an initial fixed asset investment of $1.890 million. The fixed asset will be depreciated straight-line to zero over its 2-year tax life, after which time it will be worthless. The project is estimated to generate $1,680,000 in annual sales, with costs of $672,000. If the tax rate is 31 percent and the required return on the project is 10 percent, the NPV for this project is

$.

Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $5.562 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will have a market value of $432,600. The project requires an initial investment in net working capital of $618,000. The project is estimated to generate $4,944,000 in annual sales, with costs of $1,977,600. The tax rate is 35 percent and the required return on the project is 8 percent. The NPV for this project is $.