Without using excel.

2. You have been asked by the president of your company to evaluate the proposed acquisition of a new spectrometer for the firm's R&D department. The equipment's base price is $140,000, and it would cost another $30,000 to modify it for special use by your firm. The spectrometer, which falls into the MACRS 3-year class, would be sold after 3 years for $ working capital (spare parts inventory) of $8,000 at time zero. The spectrometer would have no effect on revenues, but is expected to save the firm $50,000 per year in before-tax operating costs, mainly labor. The firm's marginal federal-plus-state tax rate is 40 percent. 60,000. Use of the equipment would require an increase in net a. What is the net investment of the spectrometer? b. What are the net operating cash flows in years 1, 2 and 3? c. What is the additional, non-operating, or terminal cash flow in year 3? d. If the project's cost of capital is 8 percent, what is the NPV of spectrometer