Problem 12 Intro The local franchise of Jiffy Lube is thinking of buying a new ift for $70,000 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 vale after 3 years The appropriate cost of capital for this project is 11%. The company has a tax rate of 21% Year 1 50,000 23,333 26,667 Year 2 55,000 23,333 31,667 Year 3 66,000 23,333 42.667 Cost savings Depreciation EBIT Thxes (21%) Net Income Depreciation FCF Attempt 1/5 for 8 pts. Part 1 What is the free cash flow in year 17 No decimals Submit BB Attempt 1/5 for 8 pts. Part 2 What is the free cash No decimals Submit Attempt 1/5 for 8 pts. Part 3 What is the free cash flow in year 3? No decimals Submit B Attempt 1/5 for 8 pts. Part 4 What is the NPV of this project? No decimals Submit