Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $1.62 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will be sold for $126,000. The project requires an initial investment in net working capital of $180,000, all of which is recovered at the end of the project. The project is estimated to generate $1,440,000 in annual sales, with costs of $576,000. The tax rate is 33 percent and the required return on the project is 11 percent.

What is the project's year 0 net cash flow? HINT: This will not include OCF

What is the project's year 1 net cash flow? HINT: This will include OCF.

What is the project's year 2 net cash flow?

What is the project's year 3 net cash flow?

What is the NPV?