Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $2.2 million. The fixed asset falls into the 3-year MACRS class (MACRS Table) and will have a market value of $172,200 after 3 years. The project requires an initial investment in net working capital of $246,000. The project is estimated to generate $1,968,000 in annual sales, with costs of $787,200. The tax rate is 33 percent and the required return on the project is 12 percent.

Required:

(a)	What is the project's year 0 net cash flow?
	-981,456 -2,323,700 -2,201,400 -929,801 -2,446,000

(b)	What is the project's year 1 net cash flow?
	981,456 929,801 1,136,423 1,033,112 1,084,767

(c)	What is the project's year 2 net cash flow?
	929,801 1,113,843 1,084,767 1,169,535 1,058,151

(d)	What is the project's year 3 net cash flow?
	1,379,519 1,313,827 1,248,136 1,182,444 1,084,767

(e)	What is the NPV?
	4,927,418 250,016 299,526.32 284,550 314,503