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The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $870,000, afd 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 $870,000, afd it would cost another $25,000 to install it. The machine falls into the MACRS 3-year class, and it would be soid after 3 years for $509,000. 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 copital (inventory) of $16,000. The sprayer would not change revenues, but it is expected to save the firm $385,000 per year in before-tax operating costs, mainly labor, Campbeli'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 dollac, a. What is the Year-0 net cash flow? 5 b. What are the net operating cash fows in years 1,2 , and 3 ? Year 1:5 Year 2:5 Year 3:5 c. What is the addional Year-3 cash flow (l.e, the after-tax salvage and the return of working capital)? 5 d. If the project's cost of capital is 10%, what is the NPV of the project? $ Should the machine be purchased

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