Intro Better Tires Corp. is planning to buy a new tire making machine for $80,000 that...

 

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Intro Better Tires Corp. is planning to buy a new tire making machine for $80,000 that would save it $90,000 per year in production costs. The savings would be constant over the project's 3-year life. The machine is to be linearly depreciated to zero and will have no resale value after 3 years. The appropriate cost of capital for this project is 16% and the tax rate is 21%. Part 1 Attempt 1/10 for 10 pts. What is the cash flow from assets in each year of operation (years 1 to 3)? 0+ decimals Submit Part 2 What is the NPV of this project? 0+ decimals Submit Attempt 1/10 for 10 pts. Intro Better Tires Corp. is planning to buy a new tire making machine for $80,000 that would save it $90,000 per year in production costs. The savings would be constant over the project's 3-year life. The machine is to be linearly depreciated to zero and will have no resale value after 3 years. The appropriate cost of capital for this project is 16% and the tax rate is 21%. Part 1 Attempt 1/10 for 10 pts. What is the cash flow from assets in each year of operation (years 1 to 3)? 0+ decimals Submit Part 2 What is the NPV of this project? 0+ decimals Submit Attempt 1/10 for 10 pts.