10. Problem 11 00 (New Project Analysis Problem Wall The New Project Analysis The comport Corant is considering adding robot power to its production line. There is 30.000, as it would starthe 70.000 The machine folks Wetter MACRS is and it would be sold war 3 years for 5626,000. The MACS es for the first three years are 13,0 4045, and 0 116. The machineguinteresting capital investory of $17.50. The we would not change revenuen, it is expected to save the 150.000 fra operating costs mayor camblemente 25. Conore that your convention for the still method.) Cosh outflows, I am, should be indicated amon. Do nat round heredate calculating and powers to the more dollar What is the Year net cash flow What are the net operating cash flow Year's 2 and Year 15 Year 25 Year: What is the additional Year cash flow (le, the after a salvage and the roof working 5 d. It toject's cost of capital 14, what is the NPV of the project? $ Should the machine be purchased! 835 New-Project Analysis The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $890,000, and it would cost another $18,000 to install it. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $626,000. The MACRS rates for the first three years are 0.3333, 0.4445, and 0.1481. The machine would require an increase in net worsong capital (inventory) of $17.500. The sprayer would not change revenues, but it is expected to save the firm $390,000 per year in before tax operating costs, mainly labor. Campbell's marginal tax rate is 256 Ignore the half year convention for the straight line method.) Cash outflows, if any, should be indicated by a minus sion. Do not round Intermediate calculations. Round your answers to the nearest dollar. a. What is the Year-O net cash flow? 3 b. What are the net operating cash flows in Years 1, 2, and 3? Year 1:$ Year 2:$ Year 3:5 c. What is the additional Year-3 cash flow (i.e, the after-tax salvage and the return of working capital)? d. If the project's cost of capital is 14%, what is the NPV of the project? $ Should the machine be purchased? -Select