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Will leave a like! Thanks! You must evaluate the purchase of a proposed spectrometer for the R&D department. The base price is $210,000, and it

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You must evaluate the purchase of a proposed spectrometer for the R\&D department. The base price is $210,000, and it would cost another $52,500 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 $84,000. The applicable depreciation rates are 33%,45%,15%, and 7%. The equipment would require a $5,000 increase in net operating working capital (spare parts inventory). The project would have no effect on revenues, but it should save the firm $66,000 per year in before-tax labor costs. The firm's marginal federal-plus-state tax rate is 40% - a. What is the initial investment outlay for the spectrometer, that is, what is the Year 0 project cash flow? Round your answer to the nearest cent. Negative amount should be indicated bv a minus sign. 4 b. What are the project's annual cash flows in Years 1,2 , and 3 ? Round your answers to the nearest cent. in Year 15 in Year 25 In Year 35 c. If the WACC is 13%, should the spectrometer be purchased

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