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Need part c and d as well please! The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base
Need part c and d as well please!
The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $1,100,000, and it would cost another $17,000 to install it. The machine falls into the MACRS 3-year class (the applicable MACRS depreciation rates are 33.33%, 44.45%, 14.81%, and 7.41%), and it would be sold after 3 years for $642,000. The machine would require an increase in net working capital (inventory) of $17,000. The sprayer would not change revenues, but it is expected to save the firm 5436,000 per year in before tax operating costs, mainly labor. Campbell's marginal tax rate is 40% Cash outflows, 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? 5 - 1134000 b. What are the net operating cash flows in Years 1, 2, and 3? Year 15 410518 Year 2:5 460202 Year : 327771 What is the additional Year 3 cash flow (le, the after tax salvage and the return of working capital? $ 402200 d. If the project's cost of capital is 11 , what is the NPV of the project? 13786433 Step by Step Solution
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