Videa Excel Online Structured Activity: New project analysis You must evaluate the purchase of a proposed spectrometer for the Rap department. The base price is $230,000, and it would cost another $46,000 to modify the equipment for special use by the firm. The equipment falls into the MACRS 3-year class and would be sold after 3 years for $80,500. The applicable depreciation rates are 33%, 45%, 15%, and 7%. The equipment would require an $12,000 increase in net operating working capital (spare parts inventory). The project would have no effect on revenues, but it should save the firm $38,000 per year in before-tax labor costs. The firm's marginal federal-plus-state tax rate is 40%. The data has been collected in the Microsoft Excel Online nie below. Open the spreadsheet and perform the required analysis to answer the questions below. X Open spreadsheet What is the initial investment outlay for the spectrometer, that is what is the Year project canh how? Round your answer to the nearest cent Negative amount should be indicated by a minussion $ b. What are the project's annual cash flows in Years 1, 2, and 37 Round your answer to the nearest cent. In Year 15 In Year 25 In Years c. If the WACC IS 14% should the spectrometer be purchased? You NO Excel template Sdved Search option File Home Insert Draw Page Layout Formulas Data Review View Help 9 V Arial BAY -- B16 Js B D E F $230,000 $46,000 S80,500 $12,000 $38,000 14.00% 40.00% Yr. O Yr. 1 Y: 2 Yo 3 O 0.45 0.15 Yto Yr. 1 Yr 2 Yr. 3 $38,000.00 $38.000.00 $38,000.00 1 2 3 Base price 4 Additional modification costs 5 Before-tax salvage proceeds 6 Change in NOWC 7 Before-tax labor cost savings 8 WACO 9 Tax rate 10 11 12 Depreciation rates 13 14 15 16 Base price 17 Modification costs 18 NOWC 19 20 Before-tax labor cost savings 21 Depreciation 22 Operating income 23 Taxes 24 After-tax operating income 25 Add back depreciation 26 Operating cash fows 27 29 Torminabon cash flows 29 Before-tax salvage proceeds 30 Tax on salvage value 31 NOWC recapture 32 Project cash flows 33 34 NPV 35 Project acceptance? 36 37 Formulas 38 39 Base price 40 Modification costs 41 NOWO 42 43 Before tax labor cost savings B Sheet1 $0.00 S0.00 S0.00 SB0,500.00 512,000.00 Yt. 1 Y22 Y 3 Yr. O ANIA ANIA $38.000.00 $38.000.00 $38,000.00 Calculation Mode: Automatic Workbook Static Excel template - Saved Search (Option + File Home Insert Draw Page Layout Formulas Data Review View He $ Arial BE GAY AL ab B16 M D E $0.00 $0.00 $0.00 $80,500.00 $12,000.00 Yr. 1 Yr. 2 Yr. 3 B 25 Add back depreciation 26 Operating cash flows 27 28 Termination cash flows 29 Before-tax salvage proceeds 30 Tax on salvage value 31 NOWC recapture 32 Project cash flows 33 34 NPV 35 Project acceptance? 36 37 Formulas 38 Yr. O 39 Base price #NIA 40 Modification costs #N/A 41 NOWC #NA 42 43 Before-tax labor cost savings 44 Depreciation 45 Operating Income 46 Taxes 47 After tax operating income 48 Add back depreciation 49 Operating cash flows 50 51 Termination cash flows 52 Before-tax salvage proceeds 53 Tax on salvage value 54 NOWC recapture 55 Project cash flows WNIA 56 57 NPV DNIA 58 Project acceptance? UNIA 59 60 61 62 63 64 $38,000.00 $38,000.00 ANIA #N/A WNIA #N/A #N/A UNIA $38.000.00 #NA #NIA #N/A NIA #NA ANJA ONWA ONA UNA HINA $80,500.00 ENIA $12,000.00 #N/A WNA RNA