must evaluate the purchase of a proposed spectrometer for the R\&D department. The purchase price of the spectrometer including modifications is $140,000, and the equipment I be fully depreciated at the time of purchase. The equipment would be sold after 3 years for $70,000. The equipment would require a $13,000 increase in net operating working pital (spare parts inventory). The project would have no effect on revenues, but it should save the firm $35,000 per year in before-tax labor costs. The firm's marginal federalIs-state tax rate is 25%. a. What is the initial investment outlay for the spectrometer after bonus depreciation is considered, that is, what is the Year 0 project cash flow? Enter your answer as a positive value. Round your answer to the nearest dollar. $ b. What are the project's annual cash flows in Years 1, 2, and 3? Do not round intermediate calculations. Round your answers to the nearest dollar. Year 1: $ Year 2:$ Year 3: \$ c. If tho w/CC is 11%, should the spectrometer be purchased? -Select- Yes No