New$-$Project Analysis

is $40\%.$ Cash outflows, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest dollar.

a$.$ What is the Year$-0$ net cash flow?

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b$.$ What are the net operating cash flows in Years $1,2,$ and $3?$

Year $1$:$

Year $2$:$

Year $3$:$

c$.$ What is the additional Year $3$ cash flow $($i$.$e$,$ the after$-$tax salvage and the return of working capital$)?$

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d$.$ If the project's cost of capital is $12\%,$ what is the NPV of the project?

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Should the machine be purchased?