Question: Analysis The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $1,190,000, and would into the
Analysis The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $1,190,000, and would into the MACRS 3 year class, and it would be sold after 3 years for $583,000. The MAOUS rates for the first three years are 0.3333, 0.4445, and the med net working capital (inventory) of $12,000. The sprayer would not change revenues, but is expected to save the firm $37.000 per year in between marginal tax rate is 25% (Ignore the half-year convention for the straight-in method.) wh outflows, it way, thould be indicated by my het mund your answers to the nearest dollar a. What is the Year-Onet cash flow? 5 - 127200 b. What are the net operating cash flows in Years 1, 2 and 33 Year 1: Year 25 Years What is the additional Year 3 cash flow.cile, the after tax and the return of working $ d. If the project's cost of capital is 10% what is the of the project 1 Should the machine to purchased
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