The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $1,030,000, and it would cost another $19,500 to install it. The machine falls into the MACRS 3-year class (the applicable MACRS depreciation rates are 33.33%,44.45%,14.81%, and 7.41% ), and it would be sold after 3 years for $610,000. The machine would require an increase in net working capital (inventory) of $14,500. The sprayer would not change revenues, but it is expected to save the firm $440,000 per year in before-tax operating costs, mainly labor. Campbell's marginal tax rate is 30%. Cash outfows, 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? 5 b. What are the net operating cash flows in Years 1, 2, and 3? Year 1: $ Year 2: 5 Year 3: 5 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 13%, what is the NPV of the project? s Should the machine be purchased? The president of the company you work for has asked you to evaluate the proposed acquisition of a new chromatograph for the firm's R\&D department. The equipment's basic price is $77,000, and it would cost another $14,500 to modify it for special use by your firm. The chromatograph, which falls into the MACRs 3-year class, would be sold after 3 years for $34,600. The MACRS rates for the first 3 years are 0.3333,0.4445 and 0.1481 . Use of the equipment would requi an increase in net working capital (spare parts inventory) of $4,420. The machine would have no effect on revenues, but it is expected to save the firm $26,75 per year in before-tax operating costs, mainly labor. The firm's marginal federal-plus-state tax rate is 40%. Cash outflows and negative NPV value, if any, shou 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? s b. What are the net operating cash flows in Years 1, 2, and 37 Do not include recovery of NwC or salvage value in Year 3 's calculation here. c. What is the additional cash ntw in Year 3 from NWC and salvage? $ d. If the project's cost of capital is 11%, what is the NPV of the project? s Should the chromatograph be purchased