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need some help Intro DeLuxe Furniture is thinking of buying a wood cutting machine for $140,000 that would save it $30,000 per year in production

need some help

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Intro DeLuxe Furniture is thinking of buying a wood cutting machine for $140,000 that would save it $30,000 per year in production costs. The savings would be constant over the project's 3-year life. The machine is to be linearly depreciated to zero and will have no resale value after 3 years. The machine would require an additional $6,000 in net working capital. The appropriate cost of capital for this project is 16% and the company's tax rate is 35%. Year 0 Year 1 Year 2 Year 3 0 30,000 46,667 0 30,000 30,000 46,667 46,667 -16,667 -16,667 0 -16,667 Cost savings Depreciation EBIT Taxes (35%) Net income Depreciation OCF NCS ANWC CFA IB Attempt 1/10 for 10 pts. Part 1 What is the cash flow from assets in year o? Choose the right sign. -173000 Try again Try again See solution (-2 pts.) What is the cash flow from assets in year 1? 0+ decimals Submit IB Attempt 1/10 for 10 pts. Part 3 What is the cash flow from assets in year 2? 0+ decimals Submit IB Attempt 1/10 for 10 pts. Part 4 What is the cash flow from assets in year 3? Hint: add the recovery of net working capital. 0+ decimals Submit B Attempt 1/10 for 10 pts. Part 5 What is the NPV of this project? 0+ decimals

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