DeLuxe Furniture is thinking of buying a wood cutting machine for $140,000 that would save it $30,000 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 machine would require an additional $7,000 in net operating working capital. The appropriate cost of capital for this project is 16% and the company's tax rate is 35%. Year 0 Year 1 Year 2 Year 3 0 30,000 46,667 30,000 46,667 -16,667 30,000 46,667 0 0 -16,667 - 16,667 Cost savings Depreciation EBIT Taxes (35%) Net Income Depreciation NOPAT + DEP CAPEX ANOWC FCF Part 1 18 | Attempt 2/3 for 10 pts. What is the free cash flow in year 0? Choose the right sign. - 173000 Correct Year o Year 1 Year 2 Year 3 0 30,000 30,000 30,000 0 46,667 46,667 46,667 0 -16,667 -16,667 -16,667 0 0 Cost savings Depreciation EBIT Taxes (35%) Net Income Depreciation NOPAT + DEP CAPEX ANOWC FCF 0 0 -140,000 -7,000 -147,000 To Attempt 2/3 for 10 pts. Part 2 What is the free cash flow in year 1? 0+ decimals Submit IB Attempt 1/3 for 10 pts. Part 3 What is the free cash flow in year 2? 0+ decimals Submit Part 4 IB Attempt 1/3 for 10 pts. What is the free cash flow in year 3? Hint: add the recovery of net operating working capital. 0+ decimals Submit IB Attempt 1/3 for 10 pts. Part 5 What is the NPV of this project