The president of your company, MoreS'More Enterprises, has asked you to evaluate the proposed acquisition of a new graham cracker crusher for the firm's R&D department. The equipment's basic price is $$515,000,$ and it would cost another $$25,000$ to modify it for special use by your firm. The crusher, which falls into the MACRS $3-$year class, would be sold after $3$ years for $$170,000.$ The MACRS rates for the first three years are $0\mathrm{.}3333,0\mathrm{.}4445,$ and $0\mathrm{.}1481.$ Use of the equipment would require an increase in net working capital $($spare parts inventory$)$ of $$25,000.$ The machine would have no effect on revenues, but it is expected to save the firm $$175,000$ per year in before$-$tax operating costs, mainly the intense labor needed to make crushed graham crackers. The firm's marginal tax rate is $25\%.(15)$

What is the Year$-0$ cash flow? What are the cash flows in Years $1,2,$ and $3($specifically show the additional, nonoperating costs that come in the final year, year $3)?$

If the project's cost of capital is $12\%,$ should the graham cracker crusher be purchased? Explain$/$show why or why not.