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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 $270,000, 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 $270,000, and the equipment will be fully depreciated at the time of purchase. The equipment would be sold after 3 years for $50,000. The equipment would require a $7,000 increase in net operating working capial (spare parts inventory). The project would have no effect on revenues, but it should save the firm s76,000 per year in before-tax labor costs. The firm's marginal foderatplus-state tax rate is 25% a. What is the initial investment outiay for the spectrometer after bonus depreciation is considered, that is, what is the Year of project cash flow? Enter your answer as a positive value. Mound your answer to the nearest doliari 15 b. What are the orolectis annual cash flows in Years 1, 2, and 37 Do not round intermediate calculations. Round your answers to the nearest delas. Year 1:5 Year 2i 5 Year 3:1 c. If the Wacc, is 13%, thould the spectrometer be purchased

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