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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 $1,090,000, and it would

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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 $1,090,000, and it would cost another $19,000 to install it. The machine falls into the MACRS 3-year class (the applicable MACRS depreciation rates are 33.33%, 44.45%, 14,81% and 7.41%), and it would be sold after 3 years for $573,000. The machine would require an increase in net working capital inventory) of $15,500. The sprayer would not change revenues, but it is expected to save the firm $443,000 per year in before tax operating costs, mainly labor. Campbell's marginal tax rate is 40%. 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-O net cash flow? $ b. What are the net operating cash flows in Years 1, 2, and 3? Year 1:$ Year 2: Year 3:5 c. What is the additional Year 3 cash flow 0. the after-tax salvage and the return of working capital? $ d. If the project's cost of capital is 10 %, what is the NPV of the project? 5 Should the machine be purchased

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