5. Problem 12.08 Click here to read the books Analysis of an Expansion Project NEW PROJECT ANALYSIS You must evaluate the purchase of a proposed spectrometer for the RAD department. The base price is $100.000 and would cost another $20.000 to modify the equipment for special use by the firm. The equipment falls into the MACRS 3-year claws and would be sold after 3 years for 540.000. The applicable depreciation rates are 33, 454, 15, and 7. The equipment would require a $13.000 increase in net operating working capital Ispare parts inventory). The project would have no effect on revenues, but it should save the firm $27,000 per year in before-tex labor costs. The firm's marginal federal-plus-state tax rate is 10% What is the investment outlay for the spectrometer that is what is the Year project each flow? Round your answer to the nearest cent. Negative amount should be indicated by a minussip -133000 b. What are the project's annual cash flows in Years 1. 2. und 37 Round your newers to the nearest cent. In Year 1 In Year 25 In Year 35 c. WACC 10. should the spectrometr be purchased