Hi, Can you please answer this question regardingCapital Budgeting Question so i can confirm if my answer of $-19,549 NPV and 6.03% IRR is correct.

Thanks

Question 10 (15 Marks) You must evaluate a proposed spectrometer for the R&D department. The base price is $140,000, and it would cost another $30,000 to modify the equipment for special use by the firm. The equipment falls into the MACRS 3-year class and will be sold after 3 years for $60,000. The equipment would requires an $8,000 increase in working capital. The project would have no effect on revenues, but it should save the firm $50,000 per year in before tax labour costs. Depreciation Rates Depreciation Expense Base cost Modification Total Cost Depreciation Rates 1 33.00% $ 2 45.00% 140,000 30,000 170,000.00 Book Value at time of sale Sales price Profit/Loss on Sale Tax on Profit/Loss 3 15.00% Tax Rate 1-Tax Rate WACC 40% 60% 12% 60,000 The firm's Tax rate is 40% and its WACC is 12%. Using an IF function, create a formula that decides whether you should do the project or not? Annual cost Savings Increase in working Capital 50,000 8,000 0 Total Cost Working Capital Dep Tax Savings After-Tax Cost Savings Sale of Equipment Tax on Sale Total NPV IRR 1 2 3