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New-Project Analysis The president of the company you work for has asked you to evaluate the proposed acquisition of a new chromatograph for the firm's

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New-Project Analysis The president of the company you work for has asked you to evaluate the proposed acquisition of a new chromatograph for the firm's R&D department. The equipment's basic price is $150,000, and it would cost another $22,500 to modify it for special use by your firm. The chromatograph, which falls into the MACRS 3-year dlass, would be sold after 3 years for $37,500. The MACRS rates for the first 3 years are 0.3333, 0.4445 and 0.1481. Use of the equipment would require an increase in net working capital (spare parts inventory) of $7,500. T per year in before-tax operating costs, mainly labor. The firm's marginal federal-plus-state tax rate is 30% he machine would have no effect on revenues, but it is expected to save the firm $45,000 What is the Year 0 net cash flow? If the answer is negative, use parentheses. 180000 b. What are the net operating cash flows in Years 1, 2, and 3? Do not round intermediate calculations. Round your answers to the nearest dollar. Year 1 49498 Year 2 55503 Year 3 39497 c. What is the additional (nonoperating) cash flow in Year 3? Do not round intermediate calculations. Round your answer to the nearest dollar " iha nrniact's enst nf ca nital is 1 1%, should the chromatograph be purchased? .d

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