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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 $1,000,000, 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 $1,000,000, and it would cost another $17,500 to Install it. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $523,000. 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 $13,500. The sprayer would not change revenues, but it is expected to save the firm 5368,000 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 minun sagn. Da not round Intermediate calculations. Round your answers to the nearest dollar What is the Year-O net cash flow? b. What are the project recurring cash flows in Years 1, 2, and 3? Year 1: $ Year 2: $ Year 3: $ c. What is the additional Year-3 cash flow e, the after-tax salvage and the return of working capital) $ d. If the project's cost of capital 12% What is the Nov of the project

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