You must evaluate the purchase of a spectiomater for the R&D deparmet. the base price is $140,000 and it would cost another $30,000 to modifly the equpment for speical use by the firm. the equipment falls into the MACRS 3years class and would be sold after 3 years for 60,000. The applicable deprecation rates are 33% 45% 15 % and 7% as disccussed in Appendix 12A the equpiment would require an $8,000 increase in net operating working captial (spare parts inventory) the project would have no effecrs on revenues. nut it should save the firm $50,000 per year in before tax labor costs. the firms marginal ferderal plus state tax rate is 40% the firm WACC hurdle rate or required rate of return is 12%

what is the annual cash flow for 1 year