Question 1 (7 points) Down Under Boomerang, Inc. is considering a new three year expansion project that requires an initial asset investment of $2,700,000. The fixed asset will be depreciated straight line to nero over its three-yea tax life. The project is estimated to generate $2.110,000 in annual sales, with conts of $80,000. The project will require a $280,000 increase in inventory and $100,000 increase in accounts payable at=0. The trade is 35 percent and the required retum is 12 percent. What is the project's Year O initial investment? 2,520,000 2,700,000 2,880,000 2,620,000 2,980,000