Problem 6-5 NPV and Modified ACRS 28 arded Down Under Boomerang, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $2.41 million. The fixed asset falls into the 3- year MACRS class (MACRS schedule). The project is estimated to generate $1,775,000 in annual sales, with costs of $672,000. The project requires an initial investment in net working capital of $380,000, and the fixed asset will have a market value of $375,000 at the end of the project. d a. If the tax rate is 23 percent, what is the project's Year O net cash flow? Year 1? Year 2? Year 3? (A negative answer should be indicated by a minus sign. Do not round Intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to two decimal places, e.g., 1,234,567.89.) b. If the required return is 9 percent, what is the project's NPV? (Do not round Intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to two decimal places, e.g., 1,234,567.89.) $ a. S Year 0 cash flow Year 1 cash flow Year 2 cash flow Year 3 cash flow $ 2.790,000.00 1,034,058.19 1.095,696.35 1,641.225.46 348,230.12 $ S b. NPV