Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $1.188 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 (salvage value) of $92,400. The project requires an initial investment in net working capital of $132,000. The project is estimated to generate $1,056,000 in annual sales, with costs of $422,400. The tax rate is 31 percent and the required return on the project is 17 percent.

(a) What is the project's year 0 net cash flow (or cash flow from assets)?

(b) What is the project's year 1 net cash flow (or cash flow from assets)?

(c) What is the project's year 2 net cash flow (or cash flow from assets)?

(d) What is the project's year 3 net cash flow (or cash flow from assets)?

(e) What is the NPV?