Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $1.998 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 $155,400. The project requires an initial investment in net working capital of $222,000. The project is estimated to generate $1,776,000 in annual sales, with costs of $710,400. The tax rate is 34 percent and the required return on the project is 13 percent.

Required:
(a)	What is the project's year 0 net cash flow?
	-2,331,000 -2,109,000 -2,220,000 -1,998,000 -2,442,000

(b)	What is the project's year 1 net cash flow?
	836,762 929,736 883,249 1,022,710 976,223

(c)	What is the project's year 2 net cash flow?
	883,249 929,736 1,022,710 836,762 976,223

(d)	What is the project's year 3 net cash flow?
	1,379,730 1,128,870 1,191,585 1,317,015 1,254,300

(e)	What is the NPV?
	880,914 200,188 197,249 210,197 -426,678