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Part D. please Problem 11-06 New Project Analysis The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base
Part D. please
Problem 11-06 New Project Analysis The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $1,010,000, and it would cost another $17.500 to install it. The machine falls into the MACRS 3-year class (the applicable MACRS depreciation rates are 33.3394, 44.49%, 14.31% and 2.41%), and it would be sold after 3 years for $695,000. The machine would require an increase in net working capital inventory) of $10,500. The sprayer would not change revenues, but it is expected to save the firm $369,000 per year in betore tax operating costs, mainly labor. Campbell's marginal tax rate is 30% a. What is the Year Onet cash flow? 1038000 b. What are the net operating cash flows in Years 1, 2 and 37 Do not found intermediate calculations. Round your answers to the nearest dollar Year1 5 361040 Year 2 5 395317 Year 303952 c. What is the additional Year cash flow (le, the strax salvage and the return of working capital do not round Intermediate calculation, Hound your answer to the nearest dollar 49841.3) . It the project's cost of capital is 14, what is the NP of the project? Do not round Intermediate calculations. Round your answer to the nearest dolu 201455.97 Should the machine Durchased V EM Step by Step Solution
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