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Hello, I only need help with B and D please eBook Problem Walk-Through New-Project Analysis The Campbell Company is considering adding a robotic paint sprayer

Hello, I only need help with B and D please

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eBook Problem Walk-Through New-Project Analysis The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $860,000, and it would cost another $23,000 to install it. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $544,000. The MACRS rates for the first three years are 0.3333, 0.4445, and 0.1481. The machine would require an increase in net working capital (inventory) of $13,500. The sprayer would not change revenues, but it is expected to save the firm $387,000 per year in before-tax operating costs, mainly labor. Campbell's marginal tax rate is 25%. (Ignore the half-year convention for the straight-line method.) Cash outflows, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest dollar. a. What is the Year-O net cash flow? $ -899000 b. What are the net operating cash flows in Years 1, 2, and 3? Year 1: $ 409156 Year 2: $ 370596 Year 3: $ 280943 c. What is the additional Year-3 cash flow (i.e, the after-tax salvage and the return of working capital)? $ 437351 d. If the project's cost of capital is 14%, what is the NPV of the project? $ 168584 Should the machine be purchased? Yes

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