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The Campbeli Company is considering adding a robotic paint sprayer to its production ine. The sprayer's base price is $930,000, and it would cost another

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The Campbeli Company is considering adding a robotic paint sprayer to its production ine. The sprayer's base price is $930,000, and it would cost another $17,000 to install it. The machine falls info the Mack5 3year dass, and it would be sold after 3 yeass for $554,000. The MACRS rates for the frst three years are 0.3333,0.4445, and 0.1481. The mackine would require an incease in net working capital (inventory) of $18,000. The sprayer would not change revenues, but it is expected to save the firm s375,000 per year in before-tax operating conts, mainly labor. Campseirs marginal tax rate is 25%. (1gnore the halfyear cenvention for the strakht-ine methed.) Cash outflows, if any, should be ind cated by a minus sign. Do not round intermediate calculations, Round your answers to the nearest dolar. a. What is the Year-o net cash fow? 5 5. What are the net epersting cach fows in vears 1,2 , and 3? Yeer 1 is Year 2:1 Year 3:5 e. What is the adoitional vear-3 cash flow (i.e, the artertax saivage and the return of working cagital)? 5 d. If the project's cont of copitain 13%, what is the NPV of the project? 5 Sheuld the machine be purchased

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