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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 ( $ 940,000 ),

image text in transcribed New-Project Analysis The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is \\( \\$ 940,000 \\), and it would cost another \\( \\$ 23,000 \\) to install it. The machine falls into the MACRS 3 -year class, and it would be sold after 3 years for \\( \\$ 542,000 \\). 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 \\( \\$ 14,000 \\). The sprayer would not change revenues, but it is expected to save the firm \\( \\$ 336,000 \\) 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 dollar. a. What is the Year-0 net cash flow? \\( \\$ \\) b. What are the net operating cash flows in Years 1, 2, and 3? Year 1: \\$ Year 2: \\$ Year 3: \\$ c. What is the additional Year-3 cash flow (i.e, the after-tax salvage and the return of working capital)? \\( \\$ \\) d. If the project's cost of capital is \12, what is the NPV of the project? \\( \\$ \\) Should the machine be purchased

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