Question $9$

$5$ pts

The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $$900,000,$ and it would cost another $$22,500$ to install it$.$ The machine falls into the MACRS $3-$year class, and it would be sold after $3$ years for $$504,000.$ The MACRS rates for the first three years are $0\mathrm{.}3333,0\mathrm{.}4445,$ and $0\mathrm{.}1481.$ The machine would require an increase in net working capital $($inventory$)$ of $$12,500.$ The sprayer would not change revenues, but it is expected to save the firm $$325,000$ per year in before$-$tax operating costs, mainly labor. Campbell's marginal tax rate is $25\%.$ The cost of capital is $8\%.$ What is the NPV of this potential project? Do not round intermediate calculations. Round your final answer to the nearest dollar.

$*$NOTE$...$depending on your rounding procedures, you might 'miss' MY version of the right answer by a few dollars $($probably less than $$100$dots maybe more like a few dollars$).$ So in this case, you may select the 'close' answer below....I've intentionally left large gaps between the potential answer option

$$407,589$

$$304,812$

$$80,227$

$$202,900$

$$115,226$