7. TEV Inc., is considering an expansion project. The project requires an initial fixed asset investment of $3.9 million. The fixed asset will be depreciated straight-line to zero over its three-year life, after which time it will be worthless. The project also requires an initial investment in net working capital of $360,000. The firm has already paid a consulting firm $80,000 to determine the viability of the project. The project is estimated to generate $3,250,000 in annual sales, with costs of $1,500,000. The tax rate is 20 percent and the required return is 12 percent. a. Determine the OCF for the expansion project. (3 marks) b. What is the project's Year 0 net cash flow? Year 1? Year 2? Year 3 ? (8 marks) c. What is the project's NPV? Should the project be accepted? Explain