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Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $6.1 million. The fixed asset falls into

Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $6.1 million. The fixed asset falls into the 3-year MACRS class (MACRS Table) and will have a market value of $474,600 after 3 years. The project requires an initial investment in net working capital of $678,000. The project is estimated to generate $5,424,000 in annual sales, with costs of $2,169,600. The tax rate is 31 percent and the required return on the project is 15 percent. (Do not round your intermediate calculations.) Required: (a) What is the project's year 0 net cash flow? (b) What is the project's year 1 net cash flow? (c) What is the project's year 2 net cash flow? (d) What is the project's year 3 net cash flow? (e) What is the NPV?

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