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need help urgent You must evaluate the purchase of a proposed spectrometer for the RsD department. The purchase price of the spectrometer induding modifications is
need help urgent
You must evaluate the purchase of a proposed spectrometer for the RsD department. The purchase price of the spectrometer induding modifications is $270,000, and the equiprnent will be ful depreciated at the time of purchase. The equipment would be sold after 3 years for $56,000. The equipment would require a 513,000 increase in net operating working capital (spare part inventory). The project would have no effect on revenues, but i ahould alse the firm $47,000 per yoar in before-tax laber costs. The firm's marginal federal-plios-state tax rate is 25%. a. What is the initial investment outlay for the spectrometer after bonus ifepreciation is corisidered, that is, what is the Year 0 projoct cash flow? Enter your answer as a positive value. Round visur answer to the ne areat dollar. 5. b. What are the broject a annual cash fows in Years 1,2, and 32 Do not round intermediate calculations. foound your answers to the neareat doEar. Yeat it 1 Year 2i Vear 3is Step by Step Solution
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