3. Firm ABC is considering investing in a project to reduce costs by $50,000 annually. The equipment costs $180,000, had a 4-year life (will be depreciated as a 3-year MACRS asset: 33% for the first year, 45% for the second year, and 15% for the third year), requires $5,000 initial investment in net working capital, and has a salvage value of $35,000. The required rate of return is 10%. Tax rate is 21%. What are the free cash flows? What are the Free Cash Flows