WITH EXPLANATION PLEASE

Machine Shop is considering a three-year project to purchase a new machine press to improve its production efficiency. Six months ago, it contracted with Dr. Wright to provide a thorough study of whether there was a need for this three-year efficiency project. The report was delivered one month ago and its cost was $25,000. The report suggests that the company should go ahead with the project subject to Masseys financial analysis. Buying a new machine press for $400,000 is estimated to result in $120,000 in annual pretax cost savings. The press falls in the MACRS five-year class and it will have a salvage value at the end of the project of $85,000. At time 0, the press will also require an additional investment in inventory of $9,000. Other current accounts will not be affected. If the companys tax rate is 40% and its WACC is 10%, determine the companys free cash flow for each year (i.e. from time 0 to time 3)? The MACRS schedule is as follows:

Year	5-year Class
1	20%
2	32%
3	19.2%
4	11.52%
5	11.52%
6	5.76%