Problem $6-4$ Calculating Project Cash Flow from Assets

Esfandairi Enterprises is considering a new $3-$year expansion project that requires an initial fixed asset investment of $$2\mathrm{.}31$ million. The fixed asset will be depreciated straight$-$line to zero over its $3-$year tax life. The project is estimated to generate $$1,770,000$ in annual sales, with costs of $$680,000.$ The project requires an initial investment in net working capital of $$370,000,$ and the fixed asset will have a market value of $$360,000$ at the end of the project.

a$.$ If the tax rate is $22$ 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 enter your answer in dollars, not millions of dollars, rounded to $2$ decimal places, e$.$g$.,1,234,567\mathrm{.}89.)$