Byers, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment...

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Byers, Inc., is considering a new three-year expansion projectthat requires an initial fixed asset investment of $1,680,000. Thefixed asset will be depreciated straight-line to zero over itsthree-year tax life, after which time it will be worthless. Theproject is estimated to generate $1,950,000 in annual sales, withcosts of $1,060,000. The project requires an initial investment innet working capital of $150,000, and the fixed asset will have amarket value of $175,000 at the end of the project. Assume that thetax rate is 34 percent and the required return on the project is 14percent.

Requirement 1:
What are the net cash flows of the project for the followingyears? (Do not round intermediatecalculations. Negative amounts should be indicatedby a minus sign. Enter youranswers in dollars, not millions of dollars (e.g.,1,234,567).)
Year Cash Flow
0 $ -1830000
1 $ 777780.96
2 $
3 $
Requirement 2:
What is the NPV of the project? (Do not roundintermediate calculations. Enter your answer indollars, not millions of dollars (e.g., 1,234,567).Round your answer to 2 decimal places (e.g.,32.16).)
NPV $

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Byers, Inc., is considering a new three-year expansion projectthat requires an initial fixed asset investment of $1,680,000. Thefixed asset will be depreciated straight-line to zero over itsthree-year tax life, after which time it will be worthless. Theproject is estimated to generate $1,950,000 in annual sales, withcosts of $1,060,000. The project requires an initial investment innet working capital of $150,000, and the fixed asset will have amarket value of $175,000 at the end of the project. Assume that thetax rate is 34 percent and the required return on the project is 14percent. Requirement 1:What are the net cash flows of the project for the followingyears? (Do not round intermediatecalculations. Negative amounts should be indicatedby a minus sign. Enter youranswers in dollars, not millions of dollars (e.g.,1,234,567).)YearCash Flow0$ -18300001$ 777780.962$3$Requirement 2:What is the NPV of the project? (Do not roundintermediate calculations. Enter your answer indollars, not millions of dollars (e.g., 1,234,567).Round your answer to 2 decimal places (e.g.,32.16).)NPV$