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The Campbell:Company is considering adding a robotic paint sprayer to its production ine. The sprayer's base price is 5950,000 , and it would cost ancther

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The Campbell:Company is considering adding a robotic paint sprayer to its production ine. The sprayer's base price is 5950,000 , and it would cost ancther s72,000 to install it. The mochine falls into the MMCRS 3 year class, and it would be soid after 3 years for 5544 , 000. The MACRS rates for the first three years are 0.3333, 0.4445, and 0.1481. The machine would require an increase in aet working copital (imentory) of $20,000. The sprayer would not change revenues, but it is expectod to strve the firm 5350,000 per year in before-tax operating costs, mainly labor. Campbel's marginal tax rate is 25%. (tignore the hair year convention for the straight-line method.) Cash outhows, if any, should be indicated by a minus sign. Do not round intermediate calculations. Reund your onswers to the nearest dollar, 0. What is the Year-0 net cash fiow? 4 b. What are the net operating cash flows in Years 1,2, and 3 ? Year 1:5 Year 2 is Year 3:5 c. What is the additional Year-3 cash fow (i.e, the after-tax salvdge and the return of warking capita)?? 5. a. If tie preject's cost of copital is 10%, what is the NPV of the project? 5 Shasid the machine be purchased

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