Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $2.9 million. The fixed asset falls into the 3-year MACRS class (MACRS Table) and will have a market value of $222,600 after 3 years. The project requires an initial investment in net working capital of $318,000. The project is estimated to generate $2,544,000 in annual sales, with costs of $1,017,600. The tax rate is 33 percent and the required return on the project is 11 percent.

(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?

Year 1 2 3 4 5 6 Property Class Three-Year Five-Year 33.33% 20.00% 44.45 32.00 14.81 19.20 7.41 11.52 11.52 5.76 Seven-Year 14.29% 24.49 17.49 12.49 8.93 8.92 8.93 4.46 7 8