The local franchise of Jiffy Lube is thinking of buying a new lift for $90,000 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	90,000	99,000	118,800

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 11% and has a tax rate of 21%.

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

b.What is the NPV?