1. Keiper, Inc., is considering a new three-year expansionproject that requires an initial fixed ass

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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 $2,080,000 inannual sales, with costs of $775,000. The tax rate is 35 percentand the required return on the project is 12 percent. What is theproject’s NPV? (Round your answer to 2 decimal places. (e.g.,32.16))

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