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The Campbell 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 Campbell 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 $19,500 to install it. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $561,000. The MACRS rates for the first three years are 0.3333 , 0.4445 , and 0.1481 . The machine would require an increase in net working capital (inventory) of $17,000, The sprayer would not change revenues, but it is expected to save the firm $341,000 per year in before-tax operating costs, mainiy labor. Campbelis marginal tax rate is 25%. (Ignore the haif-year convention for the straighttibe 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? $ b. What are the net operating cash flows in Years 1,2 , and 3 ? Year 1 is Year 2:5 Year 3 is c. What is the additional Year-3 cash flow (i.e, the after-tax salvage and the return of working capital)? d. If the project's cost of capial is 15%, what is the NPV of the project? 4 Should the machine be purchased

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