6. Problem 13-06 (New Project Analysis) B eBook New Project Analysis Video The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $860,000, and it would cost another $17,500 to stall it. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $458,000, The MACRS rates for the first three years are 0.3333, 0.4445, and 0.1481. The machine would require an increase in net working capital (inventory) of $17,000. The sprayer would not change revetives, but it is expected to save the firm $360,000 per year in before tax operating costs, mainly labor. Campbell's marginal tax rate is 25%. (Ignore the half-year convention for the straight-line method) Cash outflows, if any, should be indicated by a mus sign. Do not round intermediate calculations. Round your answers to the nearest dollar a. What is the Year-0 net cash flow? $ b. What are the project recurring cash flows in Years 1, 2, and 3? Year 1:$ Year 2:5 Year 3:5 c. What is the additional Year-3 cash flow (i.e, the after-tax salvage and the return of working capital)? $ d. If the project's cost of capital is 12%, what is the NPV of the project? $