HV Excel Structured and You must valuate the purchase of a proposed to create RAD. The 150.000, de 10 de Wife. The MACRS) yearded whese are for 0.000 The Needs 45, The 12.00 wing wtory). The relect with no afect one, but the Cerchman that the Online the below. On the other and perform that Open sorvadsheet What is the initial investment ontlar tor the resteromater, then the rear a countert en tout round your artner to the nearest core prin munt them to biocited by more than B. What are the projects annual cash flows on vars 1. 2. and Yound went on the scene In 18 In years In Year c. If the WACC 6134. should the spectror be purch Video 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 $30,000 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 $60,000. The applicable depreciation rates are 33%, 45%, 15%, and 7%. The equipment would require an $14,000 increase in net operating working capital (spare parts inventory). The project would have no effect on revenues, but it should save the firm $36,000 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 a. What is the initial investment outlay for the spectrometer, that is, what is the Year 0 project cash flow? Round your answer to the nearest cent. Negative amount should be indicated by a minus sign. $ b. What are the project's annual cash flows in Years 1, 2, and 3? Round your answers to the nearest cent. In Year 1$ In Year 2.5 In Year 3 $ C. If the WACC is 13%, should the spectrometer be purchased? | Video 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 $30,000 to modify the equipment for special use by the firm. The equipment falls into the MACRS 3-year dass and would be sold after 3 years for $60,000. The applicable depreciation rates are 33%, 45%, 15%, and 7%. The equipment would require an $14,000 increase in net operating working capital (spare parts inventory). The project would have no effect on revenues, but it should save the firm $36,000 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 a. 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 project's annual cash flows in Years 1, 2, and 37 Round your answers to the nearest cent. In Year 1$ In Year 2 $ In Year 3 $ c. If the WACC is 13%, should the spectrometer be purchased
