The Campbell Company is considering adding a robotic paint sprayer to its production lane. The speayer's base price is $1,120,000, and it would cost another $17,500 to install it. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $385,000. The MACRS rates for the first the years a 0.3333,04445, and 0 1481. The machine would require an increase in networking capital (inventory) of $16.500. The sprayer would not change reves but it is expected to save the firm $396,000 per year in before-tex 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 sigs. Do not round intermediate calculation Round your answers to the nearest dolla What is the Year-O net cash flow What are the net operating cash flows an Years 1, 2, 37 Year 15 Yew 25 Year 3.5 Was the timal Year 3 cash flow (L, the after tax alvage and the rear of working capital? 4. the project's cost of capital as 14%, what is the NPV of the project Should the machine be purchased fico Famil ERIN B 61 et Min 9 x O The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $1,120,000, and it would cost another $17,500 to install it. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $585,000. 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 $16,500. The sprayer would not change revenues, but it is expected to save the firm $396,000 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- 20 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: $ Year 2: $ Year 3: $ 4 c. What is the additional Year-3 cash flow (l.e, the after-tax salvage and the return of working capital)? $ d. If the project's cost of capital is 14%, what is the NPV of the project? $ Should the machine be purchased? Select- N >