Glucoscan Corporation is considering investing in a new glucose reader machine that has an estimated life of four years. The cost of the machine is $24,000 and the machine will be depreciated straight line over its four-year life to a residual value of $0. In the first year, the new machine is expected to bring in new sales of 2000 readers. Growth rate in sales is estimated at 10% per year each year through year four. Glucoscan will charge a price per reader of $16 each. The readers have a cost per unit to manufacture of $8 each. There is no investment in net working capital required for this project. The firm is in the 30% tax bracket, and has a cost of capital of 10%.

(A) What is the depreciation tax shield for this project in the first year

(B) The incremental EBIT in the first year for Glucoscan Corporation's project is closest to:

(C) The incremental unlevered net income in the first year for Glucoscan Corporation's project is closest to:

(D) What is the firms free cash flow for the first year?

(E) Calculations for free cash flows for Year 2, Year 3 and Year 4 are as follows: $13,840 $15,044 $16,707 What is the NPV of this project?