You are to evaluate the proposed acquisition of a new machine whose base price is $90,000 plus an additional $10,000 in installation costs, and it falls in the MACRS 3-year class life [33, 45, 15 and 7) Purchase of the machine would lead to an increase of $1,000 in inventories, $1,000 in accounts receivable, and S1,000 in accounts payable. The machine would increase the firm's before-tax operating revenues by $40,000 per year and decrease operating costs by $10,000 per year. The machine is expected to be used for three years and then sold for $8,000. The firm's marginal tax rate is 40%, and the project's cost of capital is 10%. Is this a good project? 1/1 point Question 31 Question 32 Calculate the free cash flow for year 3. Calculate the IRR for the project. a) 36,000 a) 14.3% X b) 42,600 X b) 15.3% c) 44,600 c) 16.3%