Question: 6. A projects machine costs $180,000 today, had a 4-year life (will be depreciated as a 3-year MACRS asset: 33% for the first year, 45%

6. A projects machine costs $180,000 today, had a 4-year life (will be depreciated as a 3-year MACRS asset: 33% for the first year, 45% for the second year, and 15% for the third year). The projects goal is to reduce costs by $50,000 per year and requires no additional investment in net working capital, but has a salvage value of $35,000 in the terminal year. The required rate of return is 12%. Tax rate is 21%. What are the Free Cash Flows? Do you accept the project? Why?

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