Quad Enterprises is considering a new threeyear expansion
project that requires an initial fixed asset investment of $2.64
million. The fixed asset will be depreciated straightline to zero
over its threeyear tax life, after which time it will be
worthless. The project is estimated to generate $2,060,000 in
annual sales, with costs of $755,000. The project requires an
initial investment in net working capital of $280,000, and the
fixed asset will have a market value of $270,000 at the end of the
project. If the tax rate is 35 percent, what is the project’s Year
0 net cash flow? Year 1? Year 2? Year 3? (Do not round
intermediate calculations. Enter your answers in dollars, not
millions of dollars, e.g. 1,234,567. Negative amounts should be
indicated by a minus sign.)
Years 
Cash Flow 
Year 0 
$ 
Year 1 
$ 
Year 2 
$ 
Year 3 
$ 
If the required return is 13 percent, what is the project's NPV?
(Do not round intermediate calculations and round your
final answer to 2 decimal places, e.g., 32.16.)

