Question Down Under Boomerang , Inc . , is considering a new three year expansion project that requires an initial fixed asset investment of $ 2 4 million . The fixed asset will be depreciated straight - line to zero over its three year tax life , after which time it will be worthless . The project is estimated to generate $1 980 000 in annual sales , with costs of $675 000 . The project requires an initial investment in net working capital of $200 000 , and the fixed asset will have a market value of $ 310 000 at the end of the project . If the tax ate is 34 percent what is the project's Year Onet cash flow ? Year 1 ? Year 2 ? Year 3 ? ( Enter your answers in dollars not millions of dollars ( e . g . , 1 234 , 567 ) . Negative amounts should be indicated by a minu sign . ) Years Cash Flow Year Of Year 1 Year 2 5 Year 3 $ If the required return is 18 percent , what is the project's NPV ? Do not round intermediate calculations and round your final answer to 2 decimal place ( e . 8 . , 32 16 ) . ) NPV sue