Essepi Acdtional modifcaton costs Den sax salvage proceeds Chan NOWO Tensboro ang WACC $200.000 540.CDO $100.CO $11.CO $JCUO 300% 490 Yr o Yr 1 Y: 2 Yr) Depreciations 0.33 0.15 Yr Yr 1 Y: 2 Yr 3 Bipo Modo costs NOWC $31.000.00 521.000.00 531,000.00 Before-alabor cool Savas Cesrecision Ocean $0.00 $0.00 $0.00 Atte tax optico Ac Sack depreciation Ocering cash flows Tomato casn Now Beli- bago proced Tax on salvage value NOW Paths $130.000.00 $11,000 OU NPV P Project ane pancy Formulas YO Yr. 1 Y: 2 Yr. 3 a pie Modric costs NOWC ANA WNIA $31.000.00 Beta - labras Depreciation Operating axes Apa CO Add back doorociation Opening shoes $31.000 ANA ANA ANA F ANA $1.002 00 NIA INA NA #NA NNA ANIA ANA ANA ANIA ANIA ANIA $100.000.00 Terminang Befo-sax salvage proceeds Tax on see NOWCocaine Project cash flows NA 511,000.00 NA ANA NA AN ENIA NPU Pogaci acceptance? You must evaluate the purchase of a proposed spectrometer for the R&D department. The base price is $200,000, and it would cost another $40,000 to modify the equipment for special use by the firm. The equipment falls into the MACRS 3-year class and would be sold after 3 years for $100,000. The applicable depreciation rates are 33%, 45%, 15%, and 7%. The equipment would require an $11,000 increase in net operating working capital (spare parts inventory). The project would have no effect on revenues, but it should save the firm $31,000 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 Open spreadsheet 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 proect's annual cash flows in Years 1, 2 and 3? Round your answers to the nearest cent. In Year 15 In Year 25 In Years c. If the WACC is 13%, should the spectrometer be purchased