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The president of your compony, MorChuck Enterprises, has asked you to evalubte the proposed ecquisiton of a naw chromatograph for the firmis Rso department. The

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The president of your compony, MorChuck Enterprises, has asked you to evalubte the proposed ecquisiton of a naw chromatograph for the firmis Rso department. The equigment's basic price is 573,000 , and it would cont another s16,500 to modify it for speclal use by your firmu, The chromatograph, which falls into the Machs J-yatr class, would be sold after 3 years for 529,700 . The MACRS retes for the first three years are 0.3333,0.4445 and 0.1481. Use of the 6quipmant would tacuire an Increase in net working capital (spare parts inventory) of 52,720 . The machine would have no effect on rovenues, but it is exptcted to save the firm 125, obo per rear in before-tax operating costs, mainly labor. The firm's marginal foderal-plut-state tax rate is 25 . Cath outflows and negotive FPV value, if any, should be indicated by a minus sign. Do not round intermediate colculations. Round your aniswers to the nearest dollac. a. What is the Yeor-0 net cosh.llow? 5 b. What are the project recurring cash fiows in Years 1,2 , and 3 ? Year1:Year21Yearat555 c. What is the additional (nonoperating) cash fiow in reor 37 d. If the prgect's cost of capital is 124 , what is the NPV of the project? Should the chromatograph be purchased

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