Question
Intro The local franchise of Jiffy Lube is thinking of buying a new lift for $90,000 that would make it easier to access the oil
Intro The local franchise of Jiffy Lube is thinking of buying a new lift for $90,000 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 C D 1 Year 1 2 3 2 Cost savings 70,000 77,000 92,400 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%.
Attempt 1/5 for 10 pts. Part 1 What is the project cash flow in year 3?
Attempt 1/5 for 10 pts. Part 2 What is the NPV?
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