Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $6.3 million. The fixed asset falls into the 3-year MACRS class (MACRS Table) and will have a market value of $487,200 after 3 years. The project requires an initial investment in net working capital of $696,000. The project is estimated to generate $5,568,000 in annual sales, with costs of $2,227,200. The tax rate is 34 percent and the required return on the project is 8 percent.

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

What is the project's year 1 net cash flow?

What is the project's year 2 net cash flow? What is the project's year 3 net cash flow? What is the NPV? MC: a) 1,281,777 b) 1,349,238.83 c) 1,111,474 d) 1,416701 e) 14,518361