The president of the company you work for has asked you to evaluate the proposed acquisition of a new chromatograph for the firm's RAD department. The equipment's basic price is $78,000, and it would cost another $18,500 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 $34,200. 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 $4,480. The machine would have effect on revenues, but it is expected to save the firm $27,880 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, 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-O net cash flow? $ b. What are the net operating cash flows in Year 1, 2, and 3? Do not include recovery of NWC or salvage value in Your 3x Calculation here Year 1: Year 21 Year 3: c. What is the additional cash flow in Year 3 from NWC and salvage? 5 d. If the project's cost of capital is 14%, what is the NPV of the project. 5 Should the chromatograph be purchased? -Select