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help ASAP The Campbell Company is considering adding a robotic paint sprayer to its production fine. The sprayer's buse price is $820,000, and it would
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The Campbell Company is considering adding a robotic paint sprayer to its production fine. The sprayer's buse price is $820,000, and it would cost another would be sold after 3 years for $599,000. The machine would require an increase in net working capital (inventory) of $17,500. The spraper woild not change revenues, but it is expected to save the firm $380,000 per year in before-tax operating costs, mainly laboc, Campbelis marginal tax rate is 40 w. Cash outflows. if any, should be indicated by a minus sign. Do not round intermediate calculations, Round your answers to the nearest dolar. a. What is the Year-0 net cash now? 5 b. What are the net operating cash flows in Years 1,2 , and 3 ? Year 1: 5 Year 2: s Year 3: 1 c. What is the addibional Year 3 cash flow (i.e, the after-tax salvage and the return of working capital)? s d. If the project's cost of capital is 15%, what is the Nov of the project? 5 Should the machine be purchased Step by Step Solution
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