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You must evaluate the purchase of a proposed spectrometer for the RBD department. The purchase price of the spectrometer including modifications is $250,000, and the

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You must evaluate the purchase of a proposed spectrometer for the RBD department. The purchase price of the spectrometer including modifications is $250,000, and the equipment will be fully depreciated at the time of purchase. The equipment would be sold after 3 years for $45,000. The equipment would require a 87.000 increase in net operating working capital (spare parts inventory). The project would have no effect on revenues, but it should save the im $42,000 per year in before-tex labor costs. The firm's marginal federal-plus-state tax rate is 25% 3. 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 rows in Years 1, 2, and 3? Do not round Intermediate calculations. Round your answers to the nearest dotlar Year 1: $ Year 2: $ Year 3: $ I c. If the WACC is 13%, should the spectrometer be purchased? Select Check My Work (2 remaining)

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