Quad enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.32 million. the fixed asset falls into the three-year macrs class (macrs schedule). the project is estimated to generate $1.735 million in annual sales, with costs of $650,000. the project requires an initial investment in net working capital of $250,000, and the fixed asset will have a market value of $180,000 at the end of the project. the tax rate is 21 percent.

a. what is the project’s year 0 net cash flow? year 1? year 2? year 3? (a negative answer should be indicated by a minus sign. do not round intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to 2 decimal places, e. g., 1,234,567.89.)
b.
if the required return is 12 percent, what is the project's npv? (do not round intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to 2 decimal places, e. g., 1,234,567.89.)

Astudent was asked to draw a demand and supply graph to illustrate the effect on the market for premium bottled water of a fall in the price of electrolyteselectrolytes used in some brands of premium bottled​ water, holding everything else constant. she drew the graph to the right and explained it as​ follows: ​"electrolyteselectrolytes are an input to some brands of premium bottled​ water, so a fall in the price of electrolyteselectrolytes will cause the supply curve for premium bottled water to shift to the right​ (from upper s 1s1 to upper s 2 right parenthesis .s2). because this shift in the supply curve results in a lower price left parenthesis upper p 2 right parenthesis commap2, consumers will want to buy more premium bottled water and the demand curve will shift to the right​ (from upper d 1d1 to upper d 2 right parenthesis .d2). we know that more premium bottled water will be​ sold, but we​ can't be sure whether the price of premium bottled water will rise or fall. that depends on whether the supply curve or the demand curve has shifted farther to the right. i assume that the effect on supply is greater than the effect on​ demand, so i show the final equilibrium price left parenthesis upper p 3 right parenthesisp3 as being lower than the initial equilibrium price left parenthesis upper p 1 right parenthesis .p1.​" where is the flaw in the​ student's argument? supply will shift inward. demand will not shift. demand will shift inward.