Please answer the question without using excel. Use formulas

Question $1$:

Ithaca Inc. is considering the purchase of new machine that will reduce manufacturing costs by $$15,000$

annually. Ithaca will use the straight$-$line method to depreciate the machine towards a zero salvage

value, and it expects to sell the machine at the end of its $5-$year operating life for $$10,000.$ The firm

expects to be able to reduce net working capital by $$15,000$ when the machine is installed, but the

required working capital will return to the original level when the machine is sold after $5$ years. Ithaca's

marginal tax rate is $20$ percent, and it uses a $12$ percent cost of capital to evaluate projects of this

nature. The machine will be purchased at a cost of $$60,000.$

a$.$ What is the amount of the initial cash flow at Year $0?$

b$.$ What are the operating cash flows for Years $1$ through $5?$

c$.$ What is the additional cash flow in Year $5?$

d$.$ What is the project's NPV$?$ What do you recommend to the company regarding this machine?