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The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $ 9 4 0 , 0
The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $ and it would cost another $ to install it The machine falls into the MACRS year class, and it would be sold after years for $ The MACRS rates for the first three years are and The machine would require an increase in net working capital inventory of $ The sprayer would not change revenues, but it is expected to save the firm $ per year in beforetax operating costs, mainly labor. Campbell's marginal tax rate is Ignore the halfyear convention for the straightline method. Cash outflows, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest dollar.
What is the Year net cash flow?
$
What are the net operating cash flows in Years and
Year : $
Year : $
Year : $
What is the additional Year cash flow ie the aftertax salvage and the return of working capital
$
If the project's cost of capital is what is the NPV of the project?
$
Should the machine be purchased?
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