1. Keiper Inc. is considering a new three-year expansionproject that requires an

1. Keiper Inc. is considering a new three-year expansionproject that requires an initial fixed asset investment of $2.7million. The fixed asset will be depreciated straight-line to zeroover its three-year tax life after which time it will beworthless. The project is estimated to generate $2080000 inannual sales with costs of $775000. The tax rate is 35 percentand the required return on the project is 12 percent. What is theprojects NPV? (Round your answer to 2 decimal places. (e.g.32.16))