You must evaluate the purchase of a proposed spectrometer for the R\&D department. The purchase price of the spectrometer including modifications is $170,000, and the equipment will be fully depreciated at the time of purchase. The equipment would be sold after 3 years for $53,000. The equipment would require an $11,000 increase in net operating working capital (spare parts inventory). The project would have no effect on revenues, but it should save the firm $74,000 per year in before-tax labor costs. The firm's maroinal federal-plus-state tax rate is 25%. a. What is the initial investment outiay for the spectrometer after bonus depreciation is considered, that is, what is the Year 0 project cash flow? Enter your answer as a positive value, Round your answer to the nearest dollar, 5 b. What are the project's annual cash flows in Years 1,2, and 3 ? Do not round intermediate calculations, Round your answers to the nearest dollar, Year 1+9 Year 2:1 Year 3: 5 c. If the WACC is 11\%, should the spectrometer be gurchased? Tannen Industries is considering an expansion. The necessary equipment would be purchased for $13 million and will be fully depreciated at the time of purchase, and the expansion would require an additional $1 million investment in net operating working capital. The tax rate is 25%. a. What is the initial investment outlay after bonus depreciation is considered? Write out your answer completely. For example, 13 milion should be entered as 13,000,000. Round your answer to the nearest dodlar. Enter your answer as a positive value. h The momnany soent and exbensed $20,000 on research related to the project last year, Would this change your answer? Explain. Check My Work Karsted Air Services is now in the final year of a project. The equipment originally cost $34 miltion, of which 100% has been depreciatad. Karsted can sell the used equipment today for $7 milson, and its tax rate is 25%. What is the equipment's after-tax salvage value? Write out your answer completely. For example, 13 million should be entered as 13,000,000. Round your answer to the nearest dollar