Problem:

Down Under Boomerang, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $1.512 million. The fixed asset falls into the 3-year MACRS class (MACRS Table). The project is estimated to generate $1,344,000 in annual sales, with costs of $537,600. The tax rate is 34 percent and the required return is 10 percent. The project requires an initial investment in net working capital of $168,000 and the fixed asset will have a market value of $117,600 at the end of the project.

Required:

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

Note: Show supporting computations in good form.