Cochrane Inc. is considering a new three-year expansion project that requires

Cochrane Inc. is considering a new three-year expansion project that requires an initial fixed asset investment of $2.28 million. The fixed asset falls into
the three-year MACRS class (MACRS Table). The project is
estimated to generate $2210000 in annual sales with costs of $1200000. The project requires an initial investment in net working capital of $156000 and
the fixed asset will have a market value of $181000 at the end of the project. Assume that the tax rate is 35 percent and the required return on the project
is 11 percent.

What is the net cash flow of the project for the following years?

Requirement 2: What is the NPV of the project?