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You must evaluate the purchase of a proposed spectrometer for the R&D department. The base price is $ 2 1 0 , 0 0 0
You must evaluate the purchase of a proposed spectrometer for the R&D department. The base price is $ and it would cost another $ to modify the equipment for special use by the firm. The equipment falls into the MACRS year class and would be sold after years for $ The applicable depreciation rates are and The equipment would require an $ increase in net operating working capital spare parts inventory The project would have no effect on revenues, but it should save the firm $ per year in beforetax labor costs. The firm's marginal federalplusstate tax rate is 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. Open spreadsheet What is the initial investment outlay for the spectrometer, that is what is the Year project cash flow? Round your answer to the nearest cent. Negative amount should be indicated by a minus sign. $ fill in the blank What are the project's annual cash flows in Years and Round your answers to the nearest cent. In Year $ fill in the blank In Year $ fill in the blank In Year $ fill in the blank If the WACC is should the spectrometer be purchased?
You must evaluate the purchase of a proposed spectrometer for the R&D department. The base price is $ and it would cost another $ to modify the equipment for special use by the firm. The equipment falls into the MACRS year class and would be sold after years for $ The applicable depreciation rates are and The equipment would require an $ increase in net operating working capital spare parts inventory The project would have no effect on revenues, but it should save the firm $ per year in beforetax labor costs. The firm's marginal federalplusstate tax rate is 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.
Open spreadsheet
What is the initial investment outlay for the spectrometer, that is what is the Year project cash flow? Round your answer to the nearest cent. Negative amount should be indicated by a minus sign.
$ fill in the blank
What are the project's annual cash flows in Years and Round your answers to the nearest cent.
In Year $ fill in the blank
In Year $ fill in the blank
In Year $ fill in the blank
If the WACC is should the spectrometer be purchased?
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