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You must evaluate the purchase of a proposed spectrometer for the R&D department. The base price is $190,000, and it would cost another $47,500 to

You must evaluate the purchase of a proposed spectrometer for the R&D department. The base price is $190,000, and it would cost another $47,500 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 $57,000The applicable depreciation rates are 33\% 45%, 15%, and 7%. The equipment would require an $10,000 increase in net operating working capital (spare parts inventory). The project would have no effect on revenues, but it should save the firm $72,000 per year in before-tax labor costs. The firm's marginal federalplusstate tax rate is 40%The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below image text in transcribed
You must evaluate the purchase of a proposed spectrometer for the R8D department, The base price is $190,000, and it would cast another $47,500 to modify the equipment for specal use by the firm. The equipment falls into the MACRS 3-year class and would be sold after 3 years for $57,000. The applicable depreciation rates are 33%,45%,15%, and 7%. The equipment would require an $10,000 increase in thet operating working capital (spare parts inventory). The project would have no effect on revenues, but it should save the firm $72,000 per year in before-tax labor costs. Then firmis marginal federal-plus-state tax rate is 40%, The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below

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