Bottoms Up Diaper Service is considering the purchase of a new industrial washer. It can purchase the washer for $$1,800$ and sell its old washer for $$500.$ The new washer will last for $6$ years and save $$500$ a year in expenses. The opportunity cost of capital is $18\%,$ and the firm$$s tax rate is $21\%.$

If the firm uses straight$-$line depreciation over a $6-$year life, what are the cash flows of the project in years $0$ to $6?$ The new washer will have zero salvage value after $6$ years, and the old washer is fully depreciated.

What is project NPV$?$

What is NPV if the firm investment is entitled to immediate $100\%$ bonus depreciation?