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The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $990,000, 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 $990,000, and it would cost another $21,500 to install it. The machine falls into the MACRS 3-year class (the applicable MACRS depreciation rates are 33.33%,44.45%,14.81%, and 7.41% ), and it would be sold after 3 years for $647,000. The machine would require an increase in net working capital (inventory) of $19,000. The sprayer would not change revenues, but it is expected to save the firm $484,000 per year in before-tax operating costs, mainly labor. Campinal tax 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:\$ 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 capital is 15%, what is the NPV of the project? $ Should the machine be purchased

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