Problem 12 Intro The local franchise of Jiffy Lube is thinking of buying a new lift for $50,000 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. The machine is to be linearly depreciated to zero and will have no resale value after 3 years. The appropriate cost of capital for this project is 11%. The company has a tax rate of 21% Year 1 Year 2 Year 3 Cost savings 50,000 55,000 66,000 Depreciation 16,667 16,667 16,667 EBIT 33,333 38,333 49,333 Taxes (21%) Net income Depreciation FCF Attempt 1/5 for 8 pts. Part 1 What is the free cash flow in year 1? No decimals Submit H L Attempt 1/5 for 8 pts. Part 2 What is the free cash flow in year 2? No decimals Submit Attempt 1/5 for 8 pts. Part 3 What is the free cash flow in year 3? No decimals Submit Attempt 1/5 for 8 pts. Part 4 What is the NPV of this project? No decimals Submit