Due to high demand for wood, San Lorenzo Lumber is considering buying a new timber cutting machine to add to its existing stock . The machine will cost $300,000 to purchase and $20,000 for shipping and installation. Last year, the firm cleared an unused area in its timber mill to make space for the machine, at a cost of $8,000. The new cutting machine will allow the company to sell an additional 140,000 pieces of wood per year, at a price of $3 per piece Variable costs, including timber, electricity and labor, are expected to add up to 60% of sales To make best use of the new machine, the company will need to increase its inventory of timber logs by $25,000. Since the firm uses trade credit when purchasing raw timber, accounts payable will increase by $12,000 The cutting machine is expected to last 4 years and will then be sold for $35,000. it falls into the 3-year MACRS class with depreciation rates as follows: Year 1 2 3 4 Depreciation rate 33% 45% 15% 7% The firm has a marginal tax rate (federal and state) of 34% Part 1 - Attempt 1/10 for 10 pts. What is the initial (year-O) free cash flow from the project? Choose the right sign O decimals Submit Part 2 B Attempt 1/10 for 10 pts What is the free cash flow in year 1? 0+ decimals Submit IB Attempt 1/10 for 10 pts Part 3 What is the free cash flow in year 29 0-econd Submit Attempt 1/10 for 10 pes Part 4 What is the free cash flow in year 37