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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

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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 $23,000 to install it. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $580,000. 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 $18,000. The sprayer would not change revenues, but it is expected to save the firm $356,000 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 dallar. a. What is the Year-O net cash flow? $ -1161000 b. What are the net operating cash flows in Years 1, 2, and 3? Year 1: 5 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 10%, what is the NPV of the project? Should the machine be purchased? -Select

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