New$-$Project Analysis

The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $$1,180,000,$ and it would cost another $$17,000$ to install it$.$ The machine falls into the MACRS $3-$year class $($the applicable MACRS depreciation rates are $33\mathrm{.}33\%,44\mathrm{.}45\%,14\mathrm{.}81\%,$ and $7\mathrm{.}41\%),$ and it would be sold after $3$ years for $$649,000.$ The machine would require an increase in net working capital $($inventory$)$ of $$16,500.$ The sprayer would not change revenues, but it is expected to save the firm $$492,000$ per year in before$-$tax operating costs, mainly labor. Campbell's marginal tax rate is $35\%.$ Cash outflows, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest dollar.

What is the Year$-0$ net cash flow?

$

$-1213500$

What are the net operating cash flows in Years $1,2,$ and $3?$

Year $1$: $

$457465$

Year $2$: $

$489357$

Year $3$: $

$376269$

What is the additional Year $3$ cash flow $($i$.$e$,$ the after$-$tax salvage and the return of working capital$)?$

$

If the project's cost of capital is $14\%,$ what is the NPV of the project?

$