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Intro The local franchise of Jiffy Lube is thinking of buying a new lift for $80,000 that would make it easier to access the oil
Intro The local franchise of Jiffy Lube is thinking of buying a new lift for $80,000 that would make it easier to access the oil filter in customers' cars and save labor. The savings would increase over the project's 3-year life, in line with the projected growth of the business: A B D 1 Year 1 2 3 2 Cost savings 100,000 110,000 132,000 The machine is to be linearly depreciated to zero and will have no resale value after 3 years. The company uses a discount rate of 13% and has a tax rate of 21%. Part 1 | Attempt 1/5 for 10 pts. What is the free cash flow in year 3? 0+ decimals Submit Part 2 Attempt 1/5 for 10 pts. What is the NPV? 0+ decimals Submit
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