The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer costs $1,102,500. The machine falls into the MACRS 3-year class, and it would be sold for $605,000 after 3 years. The MACRS allowance percentages are 0.3333, 0.4445, 0.1481, and 0.0741 for Years 1, 2, 3, and 4 respectively The machine requires an increase in operating working capital of $15,500. The sprayer would not change revenues, but is expected to save the firm $850,000 per year, mainly labor. The marginal tax rate is 35% and cost of capital is 12%.

a. What are the annual NOPAT throughout project's life?

b. What is the after-tax salvage value of the machine?
c. What are the annual NIOC throughout project's life? Hint. There is only one OWC in year 0, and its full recovers- is in year 3.
d. If the cost of capital is 12%, should the machine be purchased under the NPR' method?