Problem 13-07 (New-Project Analysis) Question 5 of 6 Check My Work (1 remaining) eBook Video New-Project Analysis The president of your company, MorChuck Enterprises, has asked you to evaluate the proposed acquisition of a new chromatograph for the firm's R&D department. The equipment's basic price is $76,000, and would cost another $16,000 to modify it for special use by your firm. The chromatograph, which falls into the MACRS 3-year class, would be sold after 3 years for $29,300. The MACRS rates for the first three years are 0.3333, 0.4445 and 0.1481. Use of the equipment would require an increase in net working capital (spare parts inventory) of $2,840. The machine would have no effect on revenues, but it is expected to save the firm $25,640 per year in before-tax operating costs, mainly labor. The firm's marginal federal-plus-state tax rate is 25%. Cash outflows and negative NPV value, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest dollar. a. What is the Year-O net cash flow? 94,840 b. What are the project recurring cash flows in Years 1, 2, and 3? Year 1: $ Year 2: $ Year 3: $ c. What is the additional (nonoperating) cash flow in Year 3? d. If the project's cost of capital is 11%, what is the NPV of the project? $ Should the chromatograph be purchased? -Select