8. The president of your company, S'More Enterprises, has asked you to evaluate the proposed acquisition of a new marshmallow goo fountain for the firm's R&D department. The equipment's basic price is $175,000, and it would cost another $25,000 to modify it for special use by your firm. The goo fountain, which falls into the MACRS 3-year class, would be sold after 3 years for $90,000. The MACRS rates for the first three years are 0.3333, 0.4445, and 0.1481. Use of the equipment would require an increase in net working capital (spare parts inventory) of $10,000. The machine would have no effect on revenues, but it is expected to save the firm $50,000 per year in before-tax operating costs, mainly the intense labor needed to make liquid marshmallow goo. The firm's marginal tax rate is 25%. (16) What is the Year-O cash flow? What are the cash flows in Years 1, 2, and 3 (specifically show the additional, nonoperating costs that come in the final year, year 3)? If the project's cost of capital is 8%, should the marshmallow goo fountain be purchased? Explain/show why or why not