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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 $1,150,000, 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 $1,150,000, 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%, 14.45%, 14.81%, and 7.41%), and it would be sold after 3 years for $576,000. The machine would require an increase in net working capital (Inventory) of $19,000. The sprayer would not change revenues, but it is expected to save the firm $437,000 per year in before-tax operating costs, mainly labor. Campbell's marginal tax rate is 30%. 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-net cash flow? b. What are the net operating cash flows in Years 1, 2, anda? Year 115 Year 2:5 Year 3: c. What is the additional Year 3 cash flow (e, the after tax salvage and the return of working capital? $ d. If the project's cost of capital is 14 %, what is the NPV of the project? Should the machine be purchased

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