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The Campbeil Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $940,000; and it would cost another

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The Campbeil Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $940,000; and it would cost another $19,000 to instali it. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $533,000. The MACR. rates for the first three years are 0.3333,0.4445, and 0.1481. The machine would requlre an increase in net working capital (inventory) of $14,000. The sprayer. would not change revenues, but it is expected to save the firm $373,000 per year in before-tax operating costs, mainly labor. Campbell's marginal tax rate is 25%. (Ignore the half-year convention for the straight-line method.) Cash outflows, 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-0 net cash flow? 5 b. What are the net operating cash flows in Years 1,2 , and 3 ? Year 1:5 Year 2:5 Year 3:5 c. What is the additional Year-3 cash fiow (1,e, the after-tax salvage and the retum of working capital)? 5 d. If the project's cost of capitalis 14%, what is the NPV of the project? Sil Should the machine be purchased

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