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You must evaluate the purchase of a proposed spectrometer for the R8D department. The purchase price of the spectrometer including modifications is $300,000, and the

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You must evaluate the purchase of a proposed spectrometer for the R8D department. The purchase price of the spectrometer including modifications is $300,000, and the equipenent will be fully depreciated at the time of purchase. The equipment would be sold after 3 years for $137,000, The equipment would require a $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 $56,000 per year in before-tax labor costs. The firm's marginal federal-plus-state tax rate is 25%. a. What is the initial investment outlay for the spectrometer after bonus depreciation is considered, that is; what is the Year 0 project cash flow? Enter your answer as a nositive value. Round your answer to the nearest dollar. 5. b. What are the project's annual cash flows in Years 1,2 , and 37 Do not round intermediate calculations. Round your answers to the nearest dollar. Year 1:5 Year 2: 5 Year-3i: 5 c. If the WACC is 13%, should the spectrometer be purchased

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