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Intro DeLuxe Fumiture is thinking of buying a wood cutting machine for $200,000 that would save it 530,000 per year in production costs. The savings

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Intro DeLuxe Fumiture is thinking of buying a wood cutting machine for $200,000 that would save it 530,000 per year in production costs. The savings would be constant over the project's 3-year life. The machine is to be linearty depreciated to zero and will have no resale value after 3 years The machine would require an additional $6,000 in net operating working capital The appropriate cost of capital for this project is 14%, and the company's tax rate is 35% Year 2 Year 3 Year Year 1 0 0 30.000 0 66,667 0 36 667 30.000 66.667 -36 667 30,000 66,667 -36 667 Cost savings Depreciation EBIT Taxes (35%) Net income Depreciation NOPAT DEP CAPEX ANOWC FCF F8 Alfempt 1/3 for 10 pts Part 1 What is the free cash flow in year 07 Choose the right sign 6+ decimals Submit IB Attempt 1/3 for topis Part 2 What is the free cash flow in year 17 Os decimal Submit SB Attempt 1/3 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 Part 5 - Attempt 1/3 for 10 pts. What is the NPV of this project? Ordecimals Submit

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