1-Your company is considering a machine that will cost $1,200 at Time 0 and which will be sold after 3 years for $200. To operate the machine, $250 must be invested at Time 0 in inventories and $50 must be invested in accounts payable. The machine will produce sales revenues of $900/year for 3 years; operating costs (excluding depreciation) will be 50 percent of sales. The machine will have depreciation expenses of $500, $500, and $200 in Years 1, 2, and 3, respectively. The company has a 40 percent tax rate and a 10 percent cost of capital.

a) What is the cash flow of this project at time 3? (The sum of both operating and nonoperating cash flows)

b) What is the NPV of this project?

please show steps and work! not using excel. Thanks!