Your firm is considering investing in a project, the details of which are given below: %u2022 A new machine costing $10,000 is required. %u2022 The project also requires an initial net working capital of $1,000, which will be recovered at the end of the project life (year 3) %u2022 The new machine is being depreciated using the 7-year MACRS rates (Rates are 14%, 25%, 17%, 13%, 9%, 9%, 9%, 4%). %u2022 The new machine can be sold at the end of the project (end of year 3) for 5,000. %u2022 The project will generate earnings before depreciation, interest, and taxes (EBDIT) of $4,000 a year over the next 3 years. %u2022 The firm%u2019s tax rate is 40%. A. What is the non-operating cash flow in year 3 ? (include calculation)

B. What is the NPV of the prject at 10 percent (include calculation). Should the firm invest in the project?