Excel Online Structured Activity: New project analysis You must evaluate the purchase of a proposed spectrometer for the R&D department. The base price is $150,000, and it would cost another $37,500 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 $67,500. The applicable depreciation rates are 33%, 45%, 15%, and 7%. The equipment would require an $12,000 increase in net operating working capital (spare parts inventory). The project would have no effect on revenues, but it should save the firm $79,000 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. Base price Additional modification costs Before-tax salvage proceeds Change in NOWC Before-tax labor cost savings WACC Tax rate $150,000 $37,500 $67,500 $12,000 $79.000 11.00% 40.00% Yr. 0 Yr. 1 Yr. 2 Yr. 3 Depreciation rates 0.33 0.45 0.15 Yr. 1 Yr. 2 Yr. 3 Base price Modification costs NOWC Yr. O $150,000.00 $37,500.00 NOWC $79,000.00 $79,000.00 $79,000.00 Before-tax labor cost savings Depreciation Operating income Taxes After-tax operating income Add back depreciation Operating cash flows $0.00 $0.00 $0.00 $67,500.00 Termination cash flows Before-tax salvage proceeds Tax on salvage value NOWC recapture Project cash flows $12,000.00 NPV Project acceptance