You must evaluate the purchase of a proposed spectrometer for the R8D department. The base price is $160, 000, and it would cost another $32,000 to modify the equipment for special use by the firm. The equipment falls into the MACRS 3 -year class and would be sold after 3 years for 572,000 . The applicable depreclation rates are 33%,45%,15%, and 7%. The equipment would require an $12,000 increase in net operating working capital (spare parts inventory). The project would have no effect on revenves, but it should save the firm 579,000 per year in before-tax labor costs. The firm's marginal federal-plus-state tax rate is 40%. The data has been collected in the Microsaft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Dpen spresdsheet a. What is the initial investment outlay for the spectrometer, that is, what is the Year 0 project cash flow? Round your answer to the nearest cent. Negative amount should be indicated by a minus sign. 5 b. What are the project's annual cash flows in Years 1, 2, and 3? Round your answers to the nearest cent. In Year 15 In Year 2:5 In Year 35 c. If the WACC is 109 , should the 5 pectrometer be purchased? Excel template - Saved Search ( Option + Q) File Home Insert Draw Page Layout Formulas Data Review View Help