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Needs answered ASAP, by 11:59 (11/29/20) thank you very much!! 6. Problem 12.08 (New Project Analysis) eBook You must evaluate the purchase of a proposed
Needs answered ASAP, by 11:59 (11/29/20) thank you very much!!
6. Problem 12.08 (New Project Analysis) eBook You must evaluate the purchase of a proposed spectrometer for the R&D department. The purchase price of the spectrometer including modifications is $190,000, and the equipment will be fully depreciated at the time of purchase. The equipment would be sold after 3 years for $50,000. The equipment would require a $12,000 increase in net operating working capital (spare parts inventory). The project would have no effect on revenues, but it should save the firm $22,000 per year in before-tax labor costs. The firm's marginal federal plus-state tax rate is 25% a. What is the initial investment outlay for the spectrometer, that is what is the Year O project cash flow? Enter your answer as a positive value. Round your answer to the nearest dollar 1. What are the projects annual cash flows in Years 1, 2, and I do not round Intermediate calculations, Round your answers to the nearest dolor Year 11 Year 2 Year : of the WACC 12%, should the spectrometer be purchased? Grade It Now Save & Continue Continue without saving Step by Step Solution
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