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You must evaluate the purchase of a proposed spectrometer for the R&D department. The purchase price of the spectrometer including modifications is $ 8 0
You must evaluate the purchase of a proposed spectrometer for the R&D department. The purchase price of the spectrometer including modifications is
$ and the equipment will be fully depreciated at the time of purchase. The equipment would be sold after years for $ The equipment would
require a $ increase in net operating working capital spare parts inventory The project would have no effect on revenues, but it should save the firm
$ per year in beforetax labor costs. The firm's marginal federalplusstate tax rate is
a What is the initial investment outlay for the spectrometer after bonus depreciation is considered, that is what is the Year project cash flow? Enter your
answer as a positive value. Round your answer to the nearest dollar.
$
b What are the project's annual cash flows in Years and Do not round intermediate calculations. Round your answers to the nearest dollar.
Year : $
Year : $
Year : $
c If the WACC is should the spectrometer be purchased?
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