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will be fully depreciated at the time of purchase. The equipment would be sold after 3 years for $132,000. The equipment would require a $13,000

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will be fully depreciated at the time of purchase. The equipment would be sold after 3 years for $132,000. The equipment would require a $13,000 increase in net operating working capital (spare parts ieventory). The project would have no effect on revenues, but it should save the firm $40,000 per year in before-tax labor costs. The firm's marginal federalplis-state tax rate is 25%. a. What is the initial investment cutiay for the spectrometer after bonus depreciation is considered, that is, what is the Year O project cash fiow? Enter your answer as a positive value. Raund your answer to the nearest dollar. 5 b. What are the orolect's annual cash fows in Years 1,2 , and 3 ? Do not round intermediate calculations. Aound your answers to the nearest dollar. Year 115 Year 215 Year: 3:4 C. If tha wacc is 10%, should the spectrometer be purchated

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