Currency to op B16 if 20 Before-tax labor cost savings C$43.000.00D$43.000.00 E 21 Deprociation 22 Operating income 23 Tares 24 Affertax operating income 25 Add back depreciation 50.0050.00 Operating cash flows 27 28 Termination cash flows 29 Before-tax salvage proceeds 30 Tax on salvage valke 11 NOWC recapture 12. Project cash flows 34NPV Project acceptance? Formulas Base price Modification costs 41 NOWC A Sheet + 43 Before-tax labor cost savings 44 Depreciation 45 Operating income 46 Taxes 47 After-tax operating income 48 Add back depreciation Operating cash flows Termination cash flows Before-tax salvage proceeds Tax on salvage value NOWC recapture Project cash flows NPV Project acceptance? WN/A WNN/A Sheet1 Calculation Mode Aytomatic Workook Stotistios? 43. F sunset Sxcel Online Structured Activity: New project analysis rou must evaluate the purchase of a proposed spectrometer for the R\&D department. The base price is $160,000, and it would cost another $24,000 to modify the equipment for special use by the firm. The equipment falls into the MACRS 3 -year dass and vould be sold after 3 years for $48,000. The applicable depreciation rates are 33%,45%,15%, and 7%. The equipment would require an $10,000 increase in net operating working capital (spare parts inventory). The project would have no effect on revenues, but it should save the firm $43,000 per year in before-tax labor costs. The firm's marginal federal-plus-state tax rate is 40%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. a. What is the initial investment outlay for the spectrometer, that is, what is the Year 0 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 3 ? Round your answers to the nearest cent. In Year 15 In Year 25 a. What is the initial investment outlay for the spectrometer, that is, what is the Year 0 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 3? Round your answers to the nearest cent. in Year 1$ In Year 2$ In Year 3$ c. If the WACC is 12%, should the spectrometer be purchased? Currency to op B16 if 20 Before-tax labor cost savings C$43.000.00D$43.000.00 E 21 Deprociation 22 Operating income 23 Tares 24 Affertax operating income 25 Add back depreciation 50.0050.00 Operating cash flows 27 28 Termination cash flows 29 Before-tax salvage proceeds 30 Tax on salvage valke 11 NOWC recapture 12. Project cash flows 34NPV Project acceptance? Formulas Base price Modification costs 41 NOWC A Sheet + 43 Before-tax labor cost savings 44 Depreciation 45 Operating income 46 Taxes 47 After-tax operating income 48 Add back depreciation Operating cash flows Termination cash flows Before-tax salvage proceeds Tax on salvage value NOWC recapture Project cash flows NPV Project acceptance? WN/A WNN/A Sheet1 Calculation Mode Aytomatic Workook Stotistios? 43. F sunset Sxcel Online Structured Activity: New project analysis rou must evaluate the purchase of a proposed spectrometer for the R\&D department. The base price is $160,000, and it would cost another $24,000 to modify the equipment for special use by the firm. The equipment falls into the MACRS 3 -year dass and vould be sold after 3 years for $48,000. The applicable depreciation rates are 33%,45%,15%, and 7%. The equipment would require an $10,000 increase in net operating working capital (spare parts inventory). The project would have no effect on revenues, but it should save the firm $43,000 per year in before-tax labor costs. The firm's marginal federal-plus-state tax rate is 40%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. a. What is the initial investment outlay for the spectrometer, that is, what is the Year 0 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 3 ? Round your answers to the nearest cent. In Year 15 In Year 25 a. What is the initial investment outlay for the spectrometer, that is, what is the Year 0 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 3? Round your answers to the nearest cent. in Year 1$ In Year 2$ In Year 3$ c. If the WACC is 12%, should the spectrometer be purchased