You have been asked by the president of your company to evaluate the proposed acquisition of a spectrometer for the firms R&D department. The equipments 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 an expected salvage value of $60,000. Use of the equipment would require an increase in spare parts inventory of $8,000. The spectrometer is expected to save the firm $80,000 per year in before-tax operating costs (i.e. effectively, there is an $80,000 cash inflow each year, excluding depreciation and tax effects). The firms marginal tax rate is 40%, and the cost of capital is 12%. Evaluate this decision using the NPV decision criteria. Should the firm buy the spectrometer?

A) Yes, the project yields an NPV of $23,684.31 B) Yes, the project yields an NPV of $25,390.45 C) Yes, the project yields an NPV of $24,599.59 D) No, the project yields an NPV of ($2,352.28)

*Please show all excel how to get this.