Question: answer d please New Project Analysis The Camphell Compony is considering adding a robotic paint spriver to its production line. The sprayer's base price is
New Project Analysis The Camphell Compony is considering adding a robotic paint spriver to its production line. The sprayer's base price is 5930 , 000, and it would cost ancther $19,000 to install it. The machine falls into the MACRS J-year class (the applicable MACRS depreciation rates are 33.3346, 44.45\%, 14,8i\%, and 7.4175), and it would be sald after I vears for 5618,000 . The machine would require an increase in net working copital (ieventory) of 513,000 . The sprayer would not change revenijes, bue it is expeted to save the firm 3491,000 ger yeor in before tax operating costs, mainly labor, Campbeli's marginal tax rate is 40%. Cash outflows, If any, should be indicated by at minus sign. Do not round intermediate calculations. Roond your answers to the tearest doller: a. What is the Year.0 net cash flow? . b. What are the net operating cash flows in Years 1,2 , and 37 Year 1: $ Year Zi 5 Year 3i 5 C What is the additional Year 3 cash flow (i.e, the after tax salvage and the return of working cagital)? (5) d. If the project's cost of copital is 10%, what is the NPV of the project? 5 Should the mathine be purchased
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