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New Project Analysis The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $880,000, and it

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New Project Analysis The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $880,000, and it would cost another $20,500 to install it. The machine falls into the MACRS 3-year class, and it would be sold after years for $627,000. The MACRS rates for the first three years are 0.3333, 0.4445, and 0.1481. The machine would require an increase in net working capital (inventory) of $19,500. The sprayer would not change revenues, but it is expected to save the firm $344,000 per year in before-tax operating costs, mainly labor. Campbell's marginal tax rate is 25% ignore the half-year convention for the straight line method.) Cash outflows, if any, should be indicated by a minus sign. Do not round Intermediate calculations. Round your answers to the nearest dolor. 8. What is the Year-O net cash flow? $ b. What are the project recurring cash flows in Years 1, 2, and 37 Year 16 Year 2:5 Year 3: c. What is the additional Year 3 cash flow (ie, the after tax savage and the return of working capital)? $ d. If the project's cost of capital is 10%, what is the NPV of the project

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