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The president of your company, Morkhuck Lnterprises, has asked you to evaluate the proposed acqustion of a new cteromatograph for Uhe firm's RAD department. The

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The president of your company, Morkhuck Lnterprises, has asked you to evaluate the proposed acqustion of a new cteromatograph for Uhe firm's RAD department. The equipment's basic price is $76,000, and it would cost ansther $20,000 to modify it for specal use by your fim. The chromatograph, which falis equ/pment would require an increase in net worving capital (space parts imventory) of $2,840. The machine would have no effect on revenues, but it is expected to save the firm $23,360 per vear in before-tax operating costs, mainly labor. The firm's marginal federal-plus-stase tax rate is 25%, Cash outfows and negative NPV value, if acm, should be indicated by a minus sign. Do net round intermedste calculations. Round your ansiers to the nearest dollar: a. What is the Year-0 net cash flew? s b. What are the project recurring cash fows in veas 1,2 , and 3 ? rear 1 . vear ? s. rear 3 s 4. What is the additenal (nomoperatingt casin fow in Yew 3 ? d. If the project's cost of capitai is 114, what is the Nirv of the project? Should the chrematogroph be purchiud

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