New-Project Analysis The Campbell Company is considering adding a robotic paint sprayer to i machine falls into the MACRS 3-year class, and it would be sold after 3 y require an increase in net working capital (inventory) of $13,500. The se costs, mainly labor. Campbell's marginal tax rate is 25%. (Ignore the ha round intermediate calculations. Round your answers to the nearest dolla a. What is the Year-O net cash flow? $ -1073500 b. What are the net operating cash flows in Years 1, 2, and 3? Year 1: $ 350745 Year 2: $ 380425 Year 3: $ 301746.5 c. What is the additional Year-3 cash flow (i.e, the after-tax salvage and 379583 d. If the project's cost of capital is 13%, what is the NPV of the project? $ 13.34 X Should the machine be purchased? Yes Hide Feedback Problem Walk-Through ding a robotic paint sprayer to its production line. The sprayer's base price is $1,040,000, and it would cost another $20,000 to install it. The s, and it would be sold after 3 years for $462,000. The MACRS rates for the first three years are 0.3333, 0.4445, and 0.1481. The machine would = (inventory) of $13,500. The sprayer would not change revenues, but it is expected to save the firm $350,000 per year in before-tax operating 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 your answers to the nearest dollar. wys in Years 1, 2, and 3? flow (1.e, the after-tax salvage and the return of working capital)? 3%, what is the NPV of the project? 2