The president of the company you work for has asked you to evaluate the proposed acquisition of a new chromatograph for the firms R&D department. The equipment's basic price is $160,000, and it would cost another $24,000 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 $72,000. The MACRS rates for the first 3 years are 0.3333, 0.4445 and 0.1481. Use of the equipment would require an increase in net working capital (spare parts inventory) of $6,400. The machine would have no effect on revenues, but it is expected to save the firm $48,000 per year in before-tax operating costs, mainly labor. The firm's marginal federal-plus-state tax rate is 40%.

1. What is the Year 0 net cash flow? If the answer is negative, use parentheses. $
6. 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	$
   Year 2	$
   Year 3	$

8. What is the additional (nonoperating) cash flow in Year 3? Do not round intermediate calculations. Round your answer to the nearest dollar. $
13. If the project's cost of capital is 10%, should the chromatograph be purchased? Yes or No

A project has an initial cost of $56,200, expected net cash inflows of $14,000 per year for 9 years, and a cost of capital of 11%. What is the project's payback period? Round your answer to two decimal places.