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ANSWER FAST PLEASE The local franchise of Jiffy Lube is thinking of buying a new lift for $60,000 that would make it easier to access
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The local franchise of Jiffy Lube is thinking of buying a new lift for $60,000 that would make it easier to access the oil filter in customers' cars and save labor. The savings would increase over the project's 3-year life, in line with the projected growth of the business. The machine is to be linearly depreciated to zero and will have no resale value after 3 years. The appropriate cost of capital for this project is 12%. The company has a tax rate of 21%. Year 1 Year 2 Year 3 30,000 33,000 20,000 20,000 10,000 39,600 20,000 19,600 13,000 Cost savings Depreciation EBIT Taxes (21%) Net income Depreciation FCF Part 1 Attempt 1/1 What is the free cash flow in year 1? 0+ decimals Save | Attempt 1/1 Part 2 What is the free cash flow in year 2? 0+ decimals Part 3 - Attempt 1/1 What is the free cash flow in year 3? 0+ decimals Save | Attempt 1/1 Part 4 What is the NPV of this project? 0+ decimals Save Step by Step Solution
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