MINDTAP 3 Problems Q Search this course Video New-Project Analysis The president of your company, MorChuck Enterprises, has asked you to evaluate the proposed acquisition of a new chromatograph for the firm's R&D department. The equipment's basic price is $74,000, and it would cost another $16,000 to modify it for special use by your firm. The chromatograph, which falls into the MACRS 3-year class, would be sold after 3 years for $33,800. The MACRS rates for the first three years are 0.3333, 0.4445 and 0.1481. Use of the equipment would require an increase in net working capital (spare parts inventory) of $4,240, The machine would have no effect on revenues, but it is expected to save the firm $22,000 per year in before-tax operating costs, mainly labor. The firm's marginal federal- plus-state tax rate is 25%. Cash outflows and negative NPV value, 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-0 net cash flow? $ b. What are the project recurring cash flows in Years 1, 2, and 3? Year 1: Year 2 Year 31 $ $ c. What is the additional (nonoperating) cash flow in Year 37 d. If the project's cost of capital is 12%, what is the NPV of the project? " Should the chromatograph be purchased -Select c @ N 2 Q W x A O -> C #3 E LLI $ 14 G Search or type UR % 85 R T 6 <6