NEW PROJECT ANALYSIS You must evaluate the purchase of a proposed spectrometer for the R&D department. The base price is $260,000, and it would cost another $52,000 to modify the equipment for special use by the firm. The equipment falls into the MACRS 3-year class and would be sold after 3 years for $117,000. The applicable depreciation rates are 339, 45%, 15%, and 7%. The equipment would require a $7,000 Increase in net operating working capita (spare parts inventory). The project would have no effect on revenues, but it should save the firm $57,000 per year in before-tax labor costs. The firm's marginal federal-plus-state tax rate is 40% What is the initial investment butlay for the spectrometer, that is, what is the Year O project cash flow Round your answer to the nearest cent. Negative amount should be Indicated by a minus sign. b. What are the project's annual cash flows in Year 1, 2 and 37 Round your answers to the nearest cent. In Year 1 In Year 25 In Year 3 c. If the WACC is 13%, should the spectrometer be purchased? -Select