Click here to read the looks Analysis of an Expansion Project NEW PROJECT ANALYSIS You must evalute the purchase of a proposed spectrometer for the RAD department. The base price is $290,000, and it would cost another $58,000 to modify the equipment for special use by the firm. The equipment falls into the MACRS 3-year dass and would be sold after 3 years for $87,000. The applicable depreciation rates are 33%, 45%, 15%, and 7%. The equipment would require a $9,000 increase in net operating working capital (spare parts inventory). The project would have no effect on reveries, but it should save the firm $69,000 per year in before-tex labor costs. The firm's marginal federal-plus-state tax rate is 40% a. What is the initial investment outlay for the spectrometer, that is, what is the Year O project cash flow? Round your answer to the nearest cent. Negative amount should be indicated by a minus sign b. What are the project's annual cash flows in Years 1, 2 and 37 Round your answers to the nearest cent. In Year 1 In Year 25 In Year 3 c. If the WACC S 11%, should the spectrometer be purchased? Select