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The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $1,000,000, 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 $1,000,000, and it would cost another $16,500 to install it. The machine falis into the MACRS 3-year dass, and it would be sold after 3 years for $485,000. 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 $14,000. The sprayer would not change revenues, but it is expected to save the firm $355,000 per year in before-tax operating costs, mainly labor, Campbell's marginal tax rate is 25%. (Ignore the haif-year convention for the straight-line method.) Cash outfiows, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest dolisr. a. What is the Year-0 net cash flow? $ b. What are the net operating cash nows in Years 1, 2, and 37 Year 1:5 (3) Year 2:5 Year 3: 5 c. What is the additional Year-3 cash fow (1.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

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