Better Tires Corp. is planning to buy a new tire making machine for $70,000 that would save it $100,000 per year in production costs. The savings would be constant over the project's 3-year life. 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 16% and the tax rate is 21%. Part 1 18 Attempt 1/5 for 10 pts. What is the free cash flow in each year of operation (years 1 to 3)? 83899.67 Correct Cost savings Depreciation (70,000/3) EBIT Taxes (21%) Net income Depreciation FCF Years 1, 2 and 3 100,000 - 23,333 = 76,667 - 16,100 = 60,567 +23,333 = 83,900 B "Attempt 2/5 for 10 pts. Part 2 What is the NPV of this project? 0+ decimals