Question: Attempts 0 Keep the Highest 3/5 6. Problem 12.00 (New Project Analysis) ook You must evaluate the purchase of a proposed spectrometer for the RAD
Attempts 0 Keep the Highest 3/5 6. Problem 12.00 (New Project Analysis) ook You must evaluate the purchase of a proposed spectrometer for the RAD department. The purchase price of the spectrometer including modifications is 5250,000, and the equipment will be fully depreciated at the time of purchase. The equipment would be sold after 3 years for $87,000. The equipment would require a $12.000 increase in net operating working capital spare parts inventory) The project would have no effect on revenues, but it should save the fim $27,000 per year in before tax labor costs. The firm's marginal federal-plus-state tax rates 25% What is the inter investment outay 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 0 nearest dollar 5 b. What are the projects annual cash flows in Years 1, 2, and 37 Do not round Intermediate calculations. Round your answers to the nearest dollar Year 1-5 Year 215 Year 2.5 c. If the WACC S 10%, should the spectrometer be purchased? Grade it Now Save & Continue Continue without saving COM duruwu
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