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You must evaluate the purchase of a proposed spectrometer for the R&D department. The base price is $ 2 7 0 , 0 0 0
You must evaluate the purchase of a proposed spectrometer for the R&D department. The base price is $ and it would cost another $ to modify the equipment for special use by the firm. The equipment falls into the MACRS year class and would be sold after years for $ The applicable depreciation rates are and 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
What is the initial investment outlay for the spectrometer, that is what is the Year project cash flow? Round your answer to the nearest cent. Negative amount should be indicated by a minus sign.
$
What are the project's annual cash flows in Years and Round your answers to the nearest cent.
In Year $
In Year $
In Year $
If the WACC is should the spectrometer be purchased?
Select
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