solve it as you want too, but keep it clear

1. Summer Tyme. Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $3.9 million. The fixed asset falls into the three-year MARCRS class (see the Table) and will be depreciated over its three-year tax life. The project is estimated to generate $2.650.000 in annual sales, with costs of $840,000. Suppose the project requires an initial investment in net working capital of $300,000, and the fixed asset will have a market value of $210,000 at the end of the project. The tax rate is 35%. Suppose that the required return on the project is 12%. What is the project's NPV and IRR? Should the firm accept this project? Year MACRS Percent 1 33.33% 2 44.45% 3 14.81% 4 7.41%