5. The Clouse Company is evaluating the proposed acquisition of a new milling machine. The machine's price is $180,000. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $50,000. The machine would require an increase in net working capital of $7,000. The milling machine would have no effect on revenues, but it is expected to save the firm $50,000 per year in before-tax operating costs, mainly labor. Clouse's marginal tax rate is 30%. ALL FORMULAS CAN BE FOUND IN CHAPTER 12 SLIDES a. STEP 1: What is the NCF (net investment today? b. STEP 2: What are the net operating cash flows in Years 1,2, and 3? YEAR 1 YEAR 2 YEAR 3 NEW MACHINE Revenue Expenses Depreciation -Profit Before Tax Taxes Depreciation Operating Cash Flows c. STEP 3: What is the Terminal net cash flow (non-operating) in Year 3