Cochrane, Inc., is considering a new three-year expansion project that requires an initial fixed ass

Cochrane, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2.55 million. The fixed asset falls into the three-year MACRS class The project is estimated to generate $2,300,000 in annual sales, with costs of $1,290,000. The project requires an initial investment in net working capitalof $165,000, and the fixed asset will have a market value of $190,000 at the end of the project. Assume that the tax rate is 35 percent and the required return on the project is 7 percent.What is the net cash flow of the project for years 0, 1, 2, and 3? What is the NPV of the project?