6. 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 including modifications is $210,000, and the equipment will be fully depreciated at the time of purchase. The equipment would be sold after 3 years for $102,000. The scuipment would require a $15.000 increase in net operating working capital (spare parts inventory). The project would have no effect on revenues, but it should save the firm $46,000 per year in before-tax laborests. The firm's marginal federal plus-state tax rate is 25%. 3. What is the initial 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 dollar $ b. What are the project's annual cash flows in Years 1, 2, and 3? Do not round intermediate calculations. Round your answers to the nearest dollar Year 1: 5 Year 2: $ Year 3: 5 c. If the WACC is 10%, should the spectrometer be purchased? -Select- Grade it Now Save & Continue Continue without saving