New-Project Analysis The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $1,190,000, and it would cost another $24,500 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 $641,000. The machine would require an increase in net working capital (inventory) of $13,500. The sprayer would not change revenues, but it is expected to save the firm $495,000 per year in before-tax operating costs, mainly labor. Campbell's marginal tax rate is 40%. a. What is the Year-0 net cash flow? $ 122800 b. What are the net operating cash flows in Years 1, 2, and 3? Round your answers to the nearest dollar. Year 1 $ Year 2 Year 3 891237 $39810C $ 102460 $ 671369 c. What is the additional Year-3 cash flow (i.e, the after-tax salvage and the return of working capital)? Round your answer to the nearest dollar.

The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $1,190,000, and it would cost another $24,500 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 $641,000. The machine would require an increase in net working capital (inventory) of $13,500. The sprayer would not change revenues, but it is expected to save the firm $495,000 per year in before-tax operating costs, mainly labor. Campbell's marginal tax rate is 40%. a. What is the Year-0 net cash flow? $ b. What are the net operating cash flows in Years 1, 2, and 3 ? Round your answers to the nearest dollar. c. What is the additional Year-3 cash flow (i.e, the after-tax salvage and the return of working capital)? Round your answer to the nearest dollar. 5 The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $1,190,000, and it would cost another $24,500 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 $641,000. The machine would require an increase in net working capital (inventory) of $13,500. The sprayer would not change revenues, but it is expected to save the firm $495,000 per year in before-tax operating costs, mainly labor. Campbell's marginal tax rate is 40%. a. What is the Year- 0 net cash flow? b. What are the net operating cash flows in Years 1, 2, and 3? Round your answers to the nearest doliar. c. What is the additional Year-3 cash flow (i.e, the after-tax salvage and the return of working capital)? Round your answer to the nearest dollar. d. If the project's cost of capital is 13%, what is the NPV of the project? Round your answer to the nearest dollar