The local franchise of Jiffy Lube is thinking of buying a new lift for $80,000 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:

	A	B	C	D
1	Year	1	2	3
2	Cost savings	80,000	88,000	105,600

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 10% and has a tax rate of 21%.

a. What is the project cash flow in year 3?

b. What is the NPV?