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You-Bee Enterprises, Inc. is considering a new three-year expansion project with the relevant cash flows below. Calculate the projects NPV and IRR. Should You-Bee accept

You-Bee Enterprises, Inc. is considering a new three-year expansion project with the relevant cash flows below. Calculate the projects NPV and IRR. Should You-Bee accept or reject this project based on your calculations? Please use the Excel template provided to answer this problem. The required return is 12%. The tax rate is 21%. The project requires an initial fixed asset investment of $2.32 million, and the fixed asset will have a market value of $180,000 at the end of the project (salvage value). The fixed asset falls into the three-year MACRS class. [This is the fixed asset part of the cash flow.] The project is estimated to generate $1.735 million in annual sales, with costs of $650,000. [This is the OCF part of cash flow.] The project requires an initial investment in net working capital of $250,000, which will be fully recovered at the end of the project. [This is the change in net working capital part of cash flow.]

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