You must evaluate the purchase of a proposed spectrometer for the R&D department. The base price is $280,000, and it would cost another $42,000 to modify the equipment for special use by the firm. The equipment falls into the MACRS 3-year dass and would be sold after 3 years for $84,000. The applicable depreciation rates are 33%. 45%, 15% and 7%. The equipment would require an $15,000 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 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. To X Open spreadsheet a. What is the initial investment outlay for the spectrometer, that is what is the Year O project cash flow? Round your answer to the nearest cent. Negative amount should be indicated by a minus sign. $ 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 In Year 33 c. If the WACC is 11%, should the spectrometer be purchased