Click here to read the eBooks Analysis of an Expansion Project NEW PROJECT ANALYSIS You must evaluate the purchase of a proposed spectrometer for the RD department. The base price is $300,000, and it would cost another $75,000 to modify the equipment for special use by the fimm. The equipment folls into the MACRS 5-year class and would be sold after 3 years for $135,000. The applicable depreciation rates are 33%, 45%, 15%, and 74. The equipment would require a $7,000 Increase in net operating working capital (spare parts inventory). The project would have no effect on revenues, but it should save the firm $66,000 per year in before-tex labor costs. The firm's marginal federal-plus-state tax rate is 40. What is the initial investment outliny for the spectrometer, that is what is the Year O project cash flow Round your anwwer to the nearest cent. Negative amount should be a h. What are the projects annual cash flow in Years 1, 2 and 3 Hound your answers to the nearest cont. In Year 15 In Year 25 In Years If the WACC s 13 should the spectrometer be purchased