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The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base pnce is $1,040,000, and it would cost another

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The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base pnce is $1,040,000, and it would cost another $17,000 to install it. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $468,000. The MACr5 rates for the first thiree years are 0.3333,0.4445, and 0.1481 . The machine would require an increase in net working capital (inventory) of $13,000. The sprayer would not ehange revenues, but it is expected to save the firm $356,000 per year in before-tax operating costs, mainly laboc. Campbell's marginal tax rate is 25%, (fignore 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 doliar. a. What is the Year-o net cash flow? 5 b. What are the net operating cash frows in Years 1, 2, and 3? Year 1:5 Year 2:5 Year 3: $ c. What is the additional Year-3 cash flow (c.e, the aften-tax salvage and the return of working capitain? s. d. If the project's cost of capital is 14%, what is the NPV of the project? 3 Shoula the machine be purchaned

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