Attempts Keep the Highest/7 16. Problem 11-06 (New-Project Analysis) elook Problem Walk-Through New-Project Analysis The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $940,000, and it would cost another $22,500 to Install it. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $519,000. The MACRS rates for the first three years are 0.3333, 0.4445, and 0.1481. The machine would require an increase in net working capital (inventory) of $15,500. The sprayer would not change revenues, but it is expected to save the firm $347,000 per year in before-tax operating costs, mainly labor. Campbell's marginal tax rate is 25%. (Ignore the half-year convention for the straight-line method.) Cash outflows, if any, should be indicated by a minus sign. Do not round intermediate calculations, Round your answers to the nearest dollar a. What is the Year-O net cash flow? $ b. What are the net operating cash flows in Years 1, 2, and 3? Year 1: Year 25 Year 3:$ c. What is the additional Year-3 cash flow che, the after-tax salvage and the return of working capital) $ 4. If the project's cost of capital is 12%, what is the NPV of the project? 5 Should the machine be purchased? Grade It Now Save & Continue