Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $2.106 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 (salvage value) of $163,800. The project requires an initial investment in net working capital of $234,000. The project is estimated to generate $1,872,000 in annual sales, with costs of $748,800. The tax rate is 33 percent and the required return on the project is 15 percent.

Required:
(a)	What is the project's year 0 net cash flow?
	-2,106,000 -2,223,000 -2,457,000 -2,340,000 -2,574,000

(b)	What is the project's year 1 net cash flow?
	934,99 4984,204 1,082,624 885,784 1,033,414

(c)	What is the project's year 2 net cash flow?
	984,204 1,033,414 934,994 1,082,624 885,784

(d)	What is the project's year 3 net cash flow?
	1,327,950 1,394,348 1,195,155 1,261,553 1,460,745

(e)	What is the NPV?
	133,178 139,837 141,159 -421,697 915,022