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please solve and explain the equipment will be fully depreciated at the time of purchase. The equipment would be sold after 3 years for $22,000,
please solve and explain
the equipment will be fully depreciated at the time of purchase. The equipment would be sold after 3 years for $22,000, The equipment would require an 58,000 increase in net opereting working capital (spare parts inventory). The project would have no effect on revenues, but it should save the firm 555 , DDo per year in before. tax labor costs. The firm's marginal federal-plus-state tax rate is 25%. a. What is the incial investment outay for the spectrometer, that is, whot is the Year 0 project cash flow? Enter your answer as a positive value. Round your ancwer to the nearest dotier. 5 6. What are the projects annuel cash nows in Yeens 1,2 , nnd 3) Do not round intermediate calculations. Round your answers to the nearest deitar. Year 1:3 Year 211 year 3:4 c. It the WACC is 11%, should the spectrometer be purchased Step by Step Solution
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