Question: 5. Problem 12.08 (New Project Analysis) ebook You must evaluate the purchase of a proposed spectrometer for the RAD department. The purchase price of the
5. Problem 12.08 (New Project Analysis) ebook You must evaluate the purchase of a proposed spectrometer for the RAD department. The purchase price of the spectrometer inducing modifications is $240,000, and the equipment will be fully deprecated at the time of purchase. The equipment would be sold after 3 years for $66,000. The equipment would require a $13,000 increase in met operating working capital (spare parts inventory). The project would have no effect on revenues, but it should save the firm $58,000 per year in before tax labor costs. The firm's marginal federal-plus-state tax rate is 25% 1. What is the inalat investment outlay for the spectrometer, that is, what is the Year o project cash flow enter your answer as a positive value. Round your answer to the nearest dolar 5. What are the projecte annual chows in Year: 1, 2 and 3? Do not round intermediate calculations. Round your answers to the nearest deitar Year 1: 5 Year 2:$ Year 3:5 c. If the WACC IS 13%, should the spectrometer be purchased Select
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