KL Eco Industries is considering a new capital budgeting project that will last for three years. KL Eco plans on using a cost of capital of 12% to evaluate this project. Based on extensive research, it has prepared the following incremental cash flow projections: Year 0 1 2 3 Sales (Revenues) 100,000 100,000 100,000 - Cost of Goods Sold (50% of Sales) 50,000 50,000 50,000 - Depreciation 30,000 30,000 30,000 = EBIT 20,000 20,000 20,000 - Taxes (35%) 7000 7000 7000 = unlevered net income 13,000 13,000 13,000 + Depreciation 30,000 30,000 30,000 + changes to working capital -5000 -5000 10,000 - capital expenditures -90,000 a) What is the free cash flow for the first year of KL Eco's project? b) What is the free cash flow for the last year of KL Eco's project? c) What is the NPV for KL Eco's Project?