Capital Budgrting: Step by Step Examples decrease in net operating working canital of $12,000. The machinery will be aepreciated MACRS Eet's suppose we have a project. with a 4 year life. The project will generate cash flows of $45,000 per year, and yearly costs will amount $5,000 a year for the project's life, The project will have a three vear life. At the end of year 3 , the prment can be sold for $50,000. Whe firm has a WACC of 10%, and is in the 25% tax bracket. Step 1: Calculate the imivin1 anal -.un