What is the project year one net cash flow

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Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $4.3 million. The fixed asset falls into the 3-year MACRS class (MACRS Table) and will have a market value of $331,800 after 3 years. The project requires an initial investment in net working capital of $474,000. The project is estimated to generate $3,792,000 in annual sales, with costs of $1,516,800. The tax rate is 33 percent and the required return on the project is 11 percent.

What is the project's year 0 net cash flow?

What is the project's year 1 net cash flow?

What is the project's year 2 net cash flow?

What is the project's year 3 net cash flow?

What is the NPV?

Reference no: EM131844027

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