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

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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