New-Project Analysis The president of your company, MorChuck Enterprises, 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 $76,000, and it would cost another $14,000 to modify it for special use by your firm. The chromatograph, which falls Into the MACRS 3-year class, would be sold after 3 years for $30,700. The MACRS rates for the first three years are 0.3333, 0,4445 and 0.1481 (Ignore the half-year convention for the straight-line method.) Use of the equipment would require an increase in net working capital (spare parts Inventory) of $4,360. The machine would have no effect on revenues, but it is expected to save the firm $22,600 per year in before-tax operating costs, mainly labor. The firm's marginal federal-plus-state tax rate is 25% Cash outflows and negative NPV value, 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? 105,360 b. What are the net operating cash flows in Yoars 1, 2 and 37 (Note: Do not include recovery of NWC or salvage value in Year 3's calculation here) $ Year 1: 25,366 Year 2 28,174 Year 3 20,690 c. What is the additional (nonoperating) cash flow in Year 3? $ d. If the project's cost of capital is 13%, what's the NPV of the project ? $ Should the chromatograph be purchased? -Select Check My Work