Dyson Industries is evaluating a three-year project. New manufacturing equipment would cost $150,000 and installation costs would be $20,000. After three years, the equipment would be sold for $60,000. Similar to Allied Food Products, Dyson Industries follows a four-year depreciation schedule using the following rates by year: 33%, 45%, 15%, 7%. The project requires an initial $8,000 increase in NOWC for inventory, which could be recovered at the end of the project. The project has no impact on revenue, but would reduce annual labor costs by $50,000 before taxes. The company's tax rate is 35%

(a) What is the "today" cash flow, also called the "Period 0" cash flow?

(b) What are the annual cash flows for Year 1, Year 2, and Year 3?

(c) If WACC is 9%, should this project be approved or rejected?