UND Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment of $2.31 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life. The project is estimated to generate $1,770,000 in annual sales, with costs of $680,000. The project requires an initial investment in net working capital of $370,000, and the fixed asset will have a market value of $360,000 at the end of the project.

a. If the tax rate is 22 percent, what is the projects Year 0 net cash flow? (2pts)

b. What is the projects Year 1 net cash flow? (2pts)

c. What is the projects Year 2 net cash flow? (2pts)

d. What is the projects Year 3 net cash flow? (2pts)

e. If the required return is 12 percent, what is the project's NPV? (2pts)