(The following information applies to the next seven problems.) You must evaluate a proposal to buy a new machine. Its base price is $50,000, installation costs would add another $10,000. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $40,000. The depreciation rates would thus be 83%, 45%, 15% and 7% for the first 4 years. The machine would require $8,000 increase in net working capital. Marginal tax rate is 40% and WACC is 10%. In addition, Fixed costs are expected to be $50,000 each year, and the firm spent $10,000 last year on market research. The below is expected information about the project. Year 1 2 3 Price 120 120 120 Quantity 500 450 600 Variable Cost 20000 18000 24000 2. Find the project's cash flows at t = 1. * O a. $1000 O b. -$1920 O c. $1920 O d. -$17880 e. None of the above 3. Find the project's cash flows at t = 2. * a. $2400 O b. $2700 O c.$3400 O d. All of the above e. None of the above