The local franchise of Jiffy Lube is thinking of buying a new lift for $70,000 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	70,000	77,000	92,400

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%.

Part 1

What is the project cash flow in year 3?

Part 2

What is the NPV?