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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
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 before tax labor costs The firm's marginal federal plus state 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 Select
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