Down Under Boomerang, Inc., is considering a new three-year expansion project

DownUnder Boomerang, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $1.4 million. The fixed asset will be depreciated straight-line to zero over its three year tax life, after which it will be worthless. The project is estimated to generate $1,120,000 in annual sales, with costs of $480,000. The tax rate is 35 percent and the required return is 12 percent. The project requires an initial investment in net working capital of $285,000 and the fixed asset will have a market value of $225,000 at the end of the project.

What is the project's Year 0 net cash flow? Year 1? Year 2? Year 3? (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.)

Years

Cash Flow

Year 0

$

Year 1

$

Year 2

$

Year 3

$

What is the NPV? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

NPV

$