Summer Tyme, Inc., is considering a new three-year expansion project that requires an initial fixed

asset investment of $3.9 million. The fixed asset falls into the three-year MARCRS class and will be

depreciated over its three-year tax life. The project is estimated to generate $2,650,000 in annual sales,

with costs of $840,000. Suppose the project requires an initial investment in net working capital of

$300,000 and the net working capital will be fully recovered at the end of the project. Also, the fixed

asset will have a market value of $210,000 at the end of the project. Suppose that the tax rate is 21%

and the required rate of return on the project is 12%. What are the project's NPV and IRR? Should

the firm accept this project?