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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 40,000 44,000 52,800 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% IB Attempt 2/5 for 10 pts. Part 1 What is the free cash flow in year 3? 0+ decimals Submit IB Attempt 2/5 for 10 pts. Part 2 What is the NPV? 0+ decimals Previous answers: 73706 Submit
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