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PLEASE HELP ASAP New Project Analysis The preadent of the company you work for has asked you to evalu fo the proposed acquisition of a

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New Project Analysis The preadent of the company you work for has asked you to evalu fo the proposed acquisition of a new chrornatograph for the firm's R8D department, The equipinent's buse prise is 574,000 , and it woukd cost another $15,000 to mod fin fo for special use by your firm. The chromatograph, which fallis into the MACRS 3 year dass, would be sold atter 3 years for 527.600. The MACRS rates for the first 3 yed are 0.3333,0.4445 and 0.1481. Use of the equipment would recuire an increase in net working capital (spare parti inventory) of $2,760. The machine would have no efic 0 on revenwes, but it is expected to save the firm $25,700 per year in before-tax operating costs, mainly Labor. The firmis marginal fecferal-plus-state tax rate is 40%. Cast fotflows and negative NPy yalue, if any, should be indicated by a minus sign. Do not round intermediate Gatculations: Round your answeics to the nearelt doltar, a What = the Year 0 net cash flow? b. What are the net operanng cash flows in Years 1,2 , and 3 ? Dc fot include recovery of NWC or salvage value in Year 3 's calculation here. C. What 8 the addibonal cash flow in Year 3 from NWC and salvagh. d. If the project's cost of capital is 13 whe, what is the NPN of the pliffect? 5 Should the churitatiograph be parchased

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