Dayman Inc. has asked you to evaluate a proposal to buy a new costume machine. The base price is $112,000, and shipping and installation costs would add another $25,000. The machine falls into the MACRS 3-year class, and it would be sold after another 3 years for $35,000. The applicable depreciation rates are 33%, 45%, 15%, and 7%. The machine would require a $7,500 increase in net operating working capital (increased inventory less increased accounts payable). There would be no effect on revenues, but pretax labor costs would decline by $56,000 per year. The marginal tax rate is 45%, and the WACC is 11.77%. Also, the firm spent $15,000 last year investigating the feasibility of using the machine.

What is the project’s total cash flow at year 3 and should the project be accepted considering only NPV? Round answers to nearest cent (two decimal places). You must show your work to receive full credit.