New Project Analysis The president of your company. MorChuck Enterprises, has asked you to evaluate the proposed acquisition of a new chromatograph for the firm's R&D department. The equipment's basic price is 572,000, and it would cost another $10,500 to modify it for special use by your firm. The chromatograph, which falls into the MACRS 3 year class, would be sold after 3 years for $27,700. The MACRS rates for the first three years are 0.3333, 0.6445 and 0.1481. Ignore the half year convention for the straight- line method. Use of the equipment would require an increase in net working capital (spare parts ventory) of $4,120. The machine would have no effect on revenues but it is expected to save the firm $25,720 per year in before-tax operating costs, mainly tabor. The firm's marginal federal-plus-state tax rate is 25% Cash outflows and negative NPV value, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest dolar. e. What is the Yearso net cash flow? b. What are the net operating cash flows in Years 1, 2, and 32 (Note: Do not include recovery of wc or salvage value in Year 3's calculation here) W Year 1: $ Year 2: $ Year 3: c. What is the additional (nonoperating) cash flow in Year 39 $ d. If the project's cost of capital is 11%, what is the NPV of the project? 5 Should the chromatograph be purchased? Select