You are employed by a regional recycling company and you have been asked by the chief financial officer of your company to evaluate the proposed acquisition of a new automated sorter and separator of recycled materials. The machine's basic price is $50,000, and it will cost another $10,000 to modify it for special use by your firm. The machine falls into the MACRS five-year depreciation class {MACRS rates as percentages: 20, 32, 19, 12, 11, 6} and will be sold after two years for $40,000. Use of the machine will require an increase in net working capital (spare parts inventory) of $2,000. The machine will have no effect on revenues, but it is expected to save the firm $20,000 per year in before-tax operating costs, mainly labor. The savings will not be impacted by inflation. The firm's marginal tax rate is 40%. The firm's capital structure is 50% debt and 50% equity. The company calculates its WACC to be 9.0% using the following inputs: before-tax cost of debt-10%, cost of equity-12%, expected market return-12%, risk-free rate-4%, and stock's beta is 1.0. a) What is the net investment in the truck project? (That is, what is the Year 0 net cash outflow?) b) What are the operating net cash flows in Years 1 & 2? c) What is the terminal cash flow in Year 2? d) What is the NPV of this project