Question: Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.55 million. The fixed asset will be depreciated

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.55 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life. The project is estimated to generate $2,030,000 in annual sales, with costs of $725,000. The project requires an initial investment in net working capital of $250,000, and the fixed asset will have a market value of $285,000 at the end of the project. If the tax rate is 35 percent, what is the projects Year 0 net cash flow? Year 1? Year 2? Year 3?(Do not round intermediate calculations. Enter your answers in dollars, not millions of dollars, e.g. 1,234,567. Negative amounts should be indicated by a minus sign.)

Years Cash Flow
Year 0 $
Year 1 $
Year 2 $
Year 3 $

If the required return is 15 percent, what is the project's NPV?(Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

NPV $

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