Problem 9 Intro Better Tires Corp. is planning to buy a new tire making machine for $40,000 that would save it $100,000 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 appropriate cost of capital for this project is 14% and the tax rate is 21%. Part 1 - Attempt 1/10 for 10 pts. What is the free cash flow in each year of operation (years 1 to 3)? 0+ decimals Submit - Attempt 1/10 for 10 pts. Part 2 What is the NPV of this project? 0+ decimals Submit Problem 10 Intro The local franchise of Jiffy Lube is thinking of buying a new lift for $60,000 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: B D 1 Year 2 3 2 Cost savings 50,000 55,000 66,000 1 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 16% and has a tax rate of 21%. IB Attempt 1/10 for 10 pts. Part 1 What is the free cash flow in year 3? 0+ decimals Submit Part 2 - Attempt 1/10 for 10 pts. What is the NPV? 0+ decimals Submit