Coca Cola is evaluating the purchase of the new machine for which the following information is given: . The useful life of the project is estimated to be 3 years. The initial investment required for the project is $1.8 million (all in time zero) The cost of goods sold is expected to be 20% of sales in first year, and 45% thereafter. . . . . . The marketing expenses is estimated by $250,000 each year The project value (the $ 1.8 million) will be depreciated equally over the useful life of the project The project is expected to increase the working capital by $25,000 in time zero Interest expense per year is $87,000 1 Tax rate equals 40% An increase in working capital of $50,000 at the beginning of the project and also in year 1. The expected sales from the new machine is estimated to be $800,000 in first year, and $1,500,000 thereafter. The Sales, General and Administrative expenses is expected to equal 20% of sales each year. . . . Based on the above information, and assume the hurdle rate of return is 8% answer the following: a) Find the Free Cash Flow of the project each year (and in time zero) b) Based on your answer in part a, find the NPV and IRR of the Project c) Based on your answer in part b, do you recommend the company to apply the project? Why