Use the following information to answer the next 5 questions.

Down Under Boomerang, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $2.41 million. The fixed asset falls into the 3-year MACRS class (MACRS schedule) (Links to an external site.). The project is estimated to generate $1,775,000 in annual sales, with costs of $672,000. The project requires an initial investment in net working capital of $380,000, and the fixed asset will have a market value of $375,000 at the end of the project.

1) If the tax rate is 23 percent, what is the projects Year 0 incremental cash flow?

2) If the tax rate is 23 percent, what is the projects Year 1 incremental cash flow?

3) If the tax rate is 23 percent, what is the projects Year 2 incremental cash flow?

4) If the tax rate is 23 percent, what is the projects Year 3 incremental cash flow?

5) If the required return is 9 percent, what is the project's NPV?