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ebook You must evaluate the purchase of a proposed spectrometer for the R&D department. The purchase price of the spectrometer including modifications is $60,000, and

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ebook You must evaluate the purchase of a proposed spectrometer for the R&D department. The purchase price of the spectrometer including modifications is $60,000, and the equipment will be fully deprecated at the time of purchase. The equipment would be sold after 3 years for $28,000. The equipment would require a $9,000 Increase in net operating working capital (spare parts Inventory). The project would have no effect on revenues, but it should save the firm $28,000 per year in before-tax labor costs. The firm's marginal federal plus-state tax rate is 25% 5. What is the initial investment outley for the spectrometer after bonus depreciation is considered, that is what is the Year O project cash flow? Enter your answer as a positive value. Round your answer to the nearest dollar . What are the project's alcach rows in Years 1, 2 and 3 Do not round intermediate calculations. Round your answers to the nearest dollar, Year 11 Year 25 Year 3 c. If the WACC IS 12%, should the spectrometer be purchased

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