You have been asked by the president of the Farr Construction Company to evaluate the proposed acquisition of a new earth mover. The mover's basic price is $50,000, and it would cost another $10,000 to modify it for special use. Assume that the mover falls into the MACRS 3-year class, that it would be sold after 3 years for $20,000, and that it would require an increase in net working capital (spare parts inventory) of $2,000. The earth mover would 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 firm's marginal federal-plus-state tax rate is 40%. a. What are the Year-0 cash flows? b. What are the operating cash flows in Years 1, 2, and 3 ? c. What are the additional (nonoperating) cash flows in Year 3? d. If the project's cost of capital is 10%, should the earth mover be purchased