b. What are the operating cash flows in Years 1, 2, and 3? Question 11-6: The Campbell Company is considering a robotic paint sprayer to its production line. The sprayer's base price is $1,080,000, and it would cost another $22,500 to install it. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $605,000. The MACRS rates for the first 3 years are 0.3333, 0.4445, and 0.1481. The machine would require an increase in net working capital (inventory) of $15,500. The sprayer would not change revenues, but it is expected to save the firm $380,000 per year in before-tax operating costs, mainly labor. Campbell's marginal tax rate is 35%.

a. What is the Year-0 net cash flow?

-$1,118,000

b. What are the operating cash flows in Years 1, 2, and 3?

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%, should the machine be purchased?

I was only able to understand the first part of the question. I have an idea about section c, but I'm stumped on b.