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You must evaluate the purchase of a proposed spectrometer for the R&D department. The purchase price of the spectrometer including modifications is $150,000, and the equipment will be fully depreciated at the time of purchase. The equipment would be sold after 3 years for $33,000. The equipment would require a $14,000 Increase in net operating working capital (spare parts inventory). The project would have no effect on revenues, but it should save the firm $59,000 per year in before tax labor costs. The firm's marginal federal plus-state tax rate is 25% a. What is the initial investment outlay for the spectrometer, that is, what is the Year O project cash flow? Enter your answer as a positive value. Round your answer to the nearest dollar $ b. What are the project's annual cash flows in Years 1, 2, and 37 Do not round intermediate calculations. Round your answers to the nearest dollar Year 1: Year 2: $ Year 3: the WACC is 12%, should the spectrometer be purchased? Karsted Air Services is now in the final year of a project. The equipment originally cost $23 million, of which 100% has been depreciated. Karsted can sell the used equipment today for $7 million, and its tax rate is 25%. What is the equipment's after-tax salvage value? Write out your answer completely. For example, 13 million should be entered as 13,000,000 Round your answer to the nearest dollar. Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The assets required for the project were fully depreciated at the time of purchase. The financial staff has collected the following information on the project: Sales revenues $10 million Operating costs 8 million Interest expense 3 million The company has a 25% tax rate, and its WACC is 10%. Write out your answers completely. For example, 13 million should be entered as 13,000,000. a. What is the project's operating cash flow for the first year (t-1)7 Round your answer to the nearest dollar b. If this project would cannibalize other projects by $0.5 million of cash flow before taxes per year, how would this change your answer to part a? Round your answer to the nearest dollar. The firm's OCF would now be $