The Kimball Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $1,150,000, and it would cost another $21,500 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 $586,000. The machine would require an increase in net working capital (inventory) of $10,000. The sprayer would not change revenues, but it is expected to save the firm $397,000 per year in before-tax operating costs, mainly labor. Campbell's marginal tax rate is 35%.

a . What is the Year O net cash flow ?" b . What are the net operating cash flows in Years 1 , 2 , and 3 ? Do not round intermediate calculations . Round your answers to the nearest dollar . Year 1 W Year 2 Year 3 c . What is the additional Year 3 cash flow ( i.e , the after -tax salvage and the return of working capital ) ? Do not round intermediate calculations . Round Your answer to the nearest dollar . J . If the project's cost of capital is 12 Yo , what is the NPV of the project ? Do not round intermediate calculations . Round your answer to the nearest dollar