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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 2 0 ,

The Campbell Company is considering adding a robotic paint sprayer to its production line . The sprayer's base price is $ 920,000, and it would cost another $ 23,500 to install it . The machine falls into the MACRS 3- year , and it would be sold after 3 years for $ 500,000. 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 $ 17,000. The sprayer would not change revenues , but it is expected to save the firm $ 333,000 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 .

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