You received no credit for this question in the previous attempt. Down Under Boomerang, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $2.28 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life. The project is estimated to generate $1,750,000 in annual sales, with costs of $660,000. The project requires an initial investment in net working capital of $330.000, and the fixed asset will have a market value of $300,000 at the end of the project. nts eBook Print a. If the tax rate is 23 percent, what is the project's Year 0 net cash flow? Year 1? Year 2? Year 3? (Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, e.g., 1,234,567. A negative answer should be indicated by a minus sign.) b. If the required return is 12 percent, what is the project's NPV? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) References Year 0 cash flow Year 1 cash flow Year 2 cash flow Year 3 cash flow b. NPV w tuuleceiveu nu lieuil TUI LIUS questi ule previou Suppose we are thinking about replacing an old computer with a new one. The old one cost us $1,340,000; the new one will cost $1,600,000. The new machine will be depreciated straight-line to zero over its five-year life. It will probably be worth about $340,000 after five years. The old computer is being depreciated at a rate of $268,000 per year. It will be completely written off in three years. If we don't replace it now, we will have to replace it in two years. We can sell it now for $460,000; in two years, it will probably be worth $124,000. The new machine will save us $294.000 per year in operating costs. The tax rate is 24 percent and the discount rate is 11 percent. a. Calculate the EAC for the old computer and the new computer. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) tes New computer Old computer $124.000. The new machine will save us $294.000 per year in operating costs. The tax rate is 24 percent and the discount rate is 11 percent. a. Calculate the EAC for the old computer and the new computer. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) ipped New computer Old computer eBook Print ferences b. What is the NPV of the decision to replace the computer now? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV Type here to search o BL @ $ e o a e