The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $$980,000,$ and it would cost another $$16,500$ to install

it$.$ The machine falls into the MACRS $3-$year class, and it would be sold after $3$ years for $$546,000.$ The MACRS rates for the first three years are $0\mathrm{.}3333,0\mathrm{.}4445,$ and

$0\mathrm{.}1481.$ 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

$$345,000$ 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$.$ What is the Year$-0$ net cash flow?

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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$)?$

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d$.$ If the project's cost of capital is $10\%,$ what is the NPV of the project?

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Should the machine be purchased?