The Campbell Company is evaluating the proposed acquisition of a new milling machine. The machine$$s base price is $$108,000,$ and it would cost another $$12,500$ to modify it for special use. The machine falls into the MACRS $3-$year class $($depreciation in year $1$ is $33\mathrm{.}33\%,$ year $2$ is $44\mathrm{.}45\%,$ year $3$ is $14\mathrm{.}81\%,$ and year $4$ is $7\mathrm{.}41\%),$ and it would be sold after $3$ years for $$65,000.$ The machine would require a one$-$time increase in net operating working capital $($inventory$)$ of $$5,500$ at the time of purchase. The milling machine would have no effect on revenues, but it is expected to save the firm $$44,000$ per year in before$-$tax operating costs, mainly labor. Campbell$$s marginal tax rate is $35\%.$

a$.$ What are the cash flows today $($t $=0)$ and in Years $1,2,$ and $3?$

b$.$ If the project$$s cost of capital is $12\%,$ should the machine be purchased?