etmeducation.com 2521/act HW. CH6 Saved 7. 10 points Down Under Boomerang, Inc. is considering a new 3-year expansion project that requires an initial fixed asset investment of $2.38 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life. The project is estimated to generate $1,805,000 in annual sales, with costs of $715,000. The project requires an initial Investment in net working capital of $440,000, and the fixed asset will have a market value of $465.000 at the end of the project. a. If the tax rate is 24 percent, what is the project's Year Onet cash flow? Year 17 Year 2? Year 3? (Do not round intermediate calculations and enter your answers in dollars, not milions of dollars, e.g. 1,234,567. A negative answer should be indicated by b. If the required return is 11 percent, what is the project's NPV? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) 04:07:25 Skipped eBook Print References a. Year O cash flow Year 1 cash flow Year 2 cash flow Year 3 cash fow b. NPV MC Graw HA Type here to search ap A ZenBook