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You must evaluste the purchase of a proposed spectrometer for the RsD department. The purchase price of the spectrometer including modifications is 5250,000 , and

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You must evaluste the purchase of a proposed spectrometer for the RsD department. The purchase price of the spectrometer including modifications is 5250,000 , and the equipment will be fuly depreciated at the time of purchase. The equipment would be sold after 3 years for $75,000. The equipment would require a $9,000 increase in net cperating working capital (spare parts ifventory). 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 federalplus-state tax rate is 25%. a. What is the initial investment outiay for the sphtrometed, that is, what is the Year o project cash fow? Enter your answer as a positive value. Round your answer to the nearest dellar. 5 14. What are the prosect's annual cath fows in Years 1, 2, and 37 Do not round intermediate calculations. Hound your answers to the nearest dollar. Year i: s Year 2:5 year 3:1 c. If the Wcc is 10%, shouid the spectrometer be purchased

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