The BlueCloud Company is evaluating the proposed acquisition of a new milling machine. The machine's base price is $34,000. The machine will be depreciated straight-line to zero for over its 4 years tax life and afterwards it will be worthless. Use of the new machine requires an increase in net working capital. According to the predictions, net working capital need is 10% of capital outlay and this will increase by 5% per year. It is expected that the project will generate a Net Sales of $67,500 in year one and it will increase by 5% in following years. Operating cost is expected 40% of Net Sales. BlueCloud's marginal tax rate is 0.35 and WACC is 0.15. 0 1 2 3 SALES REVENUE (Operating Cost) (Depreciation) EBIT Tax NOPAT +Depreciation Operating Cash Flows AFA NWC ANWC FREE CASH FLOWS Calculate FCF of the project by using the template. Show your steps below for year 4. (100 MARKS)