please help

A)

You must evaluate the purchase of a proposed spectrometer for the R&D department. The purchase price of the spectrometer including modifications is $160,000, and the equipment will be fully depreciated at the time of purchase. The equipment would be sold after 3 years for $26,000. The equipment would require a $7,000 increase in net operating working capital (spare parts inventory). The project would have no effect on revenues, but it should save the firm $28,000 per year in before-tax labor costs. The firm's marginal federal-plus-state tax rate is 25%. What is the initial investment outlay for the spectrometer, that is, what is the Year 0 project cash flow? Enter your answer as a positive value. Round your answer to the nearest dollar. $ What are the project's annual cash flows in Years 1, 2, and 3? Do not round intermediate calculations. Round your answers to the nearest dollar. Year 1: $ Year 2: $ Year 3: $ If the WACC is 11%, should the spectrometer be purchased?

B)

The Butler-Perkins Company (BPC) must decide between two mutually exclusive projects. Each project has an initial outflow of $6,500 and has an expected life of 3 years. Annual project cash flows begin 1 year after the initial investment and are subject to the following probability distributions:

Project A			Project B
Probability	Cash Flows		Probability	Cash Flows
0.2	$6,250		0.2	$ 0
0.6	6,500		0.6	6,500
0.2	6,750		0.2	17,000

BPC has decided to evaluate the riskier project at 12% and the less-risky project at 8%.

What is each project's expected annual cash flow? Round your answers to the nearest cent.

Project A:	$
Project B:	$

Project B's standard deviation (_B) is $5,464 and its coefficient of variation (CV_B) is 0.75. What are the values of (_A) and (CV_A)? Do not round intermediate calculations. Round your answer for standard deviation to the nearest cent and for coefficient of variation to two decimal places.

A:	$
CVA:

Based on their risk-adjusted NPVs, which project should BPC choose? -Select-Project AProject BItem 5

If you knew that Project B's cash flows were negatively correlated with the firm's other cash flow, whereas Project A's flows were positively correlated, how might this affect the decision? -Select-This would make Project B more appealing.This would make Project B less appealing.Item 6 If Project B's cash flows were negatively correlated with gross domestic product (GDP), while A's flows were positively correlated, would that influence your risk assessment?