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You must evaluate the purchase of a proposed spectrometer for the RaD department. The purchase price of the spectrometer including modifications is $240,000, and the

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You must evaluate the purchase of a proposed spectrometer for the RaD department. The purchase price of the spectrometer including modifications is $240,000, and the equipment will be fully depreciated at the time of purchase. The equipment would be sold after 3 years for $66,000. The equipment would require a $6,000 increase in net operating working capital (spare parts inventory). The project would have no effect on revenues, but it should save the firm $79,000 per year in before-tax labor costs. The fitm's marginal federal-ptus-state tax rate is 25%. a. What is the initial investment outlay for the spectrometer after bonus depreclation is considered, that is, what is the Year 0 project cash flow? Enter your answer as a gositive value. Round your answer to the nearest dollar, $ b. What are the prolect's annual cash fows in Years 1,2 , and 3 ? Do not round intermediate calculations. Round your answers to the nearest dollan Year 115 Year 2: $ Year 3:3 c. If the WACc is 10%, should the spectroeneter be purchased

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