Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $3.1 million. The fixed asset falls into the 3-year MACRS class (MACRS Table) and will have a market value of $243,600 after 3 years. The project requires an initial investment in net working capital of $348,000. The project is estimated to generate $2,784,000 in annual sales, with costs of $1,113,600. The tax rate is 34 percent and the required return on the project is 11 percent. (Do not round your intermediate calculations.)

Required:

(a)

What is the project's year 0 net cash flow?

1) -3,275,600

2) -3,103,200

3) -1,381,074

4) -1,308,386

5) -3,448,000

(b)	What is the project's year 1 net cash flow?
	1) 1,381,074 2) 1,599,138 3) 1,453,762 4)1,526,450 5) 1,308,386

(c)	What is the project's year 2 net cash flow?
	1) 1,570,967 2) 1,649,515 3)1,526,450 4) 1,308,386 5) 1,492,419

(d)	What is the project's year 3 net cash flow?
	1) 1,660,895 2) 1,937,711 3) 1,526,450 4) 1,753,167 5) 1,845,439

(e)	What is the NPV?
	1) 7,000,666 2) 461,792 3) 486,096.685 4) 10,402 5) 404,977