Video Excel Online Structured Activity: New project analysis You must evaluate the purchase of a proposed spectrometer for the RSD department. The base price is $60,000, and it would cost another $9,000 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 $20,000. The applicable depreciation rates are 33%, 45%, 15%, and 7%. The equipment would require an $8,000 increase in net operating working capital (spare parts inventory). The project would have no effect on revenues, but it should save the firm $41,000 per year in before-tax labor costs. The firm's marginal federal-plus-state tax rate is 40%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet a. What is the initial investment outlay for the spectrometer, that is what indicated by a minus sign the Year project cash flow? Round your answer to the nearest cent. Negative amount should b. What are the project's annual rows in Years 1, 2 and 37 Round your answers to the nearest cent In Year 16 In Year 25 In Year 3$ c. If the WACC is 14%, should the spectrometer be purchased? Check My Work R Problem x) Excel template - Saved File Home Insert Review Tell me what you want to do Data Arial a Xar View 10 Help A Currency Pasto Lo Copy A Il le 11 Format Painter BI D A S- Conditional Formatting or as Table : Undo Clipboard E 3 Base price 4 Additional modification costs 5 Before-tax salvage proceeds 6 Change in NOWC 7. Before tax labor cost savings 8 WACC 9 Tax rate $60,000 $9,000 $21,000 $8,000 $41,000 14.00% 40.00% EE YO 12 Depreciation rates 033 16 Base price 17 Modification costs 18 NOWC $41,000.00 $41,000.00 $41,000.00 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 flows $0.00 $0.00 $0.00 27 $21,000.00 28 Termination cash fows 29 Before-lax salvage proceeds 30 Tax on salvage value 31 NOWC recapture 32 Project cash flows $8.000.00 Sheet1