Question: e Set 2 Search this cout New Project Analysis Tools The Campbell Company is considering adding robotic paint sprayer to its production line. The sprayer's

 e Set 2 Search this cout New Project Analysis Tools The

e Set 2 Search this cout New Project Analysis Tools The Campbell Company is considering adding robotic paint sprayer to its production line. The sprayer's base price is $1,000,000, and it would cost another 12.000 to install it. The machine falls into the MACRS 3-year dess, and it would be sold after years for $600,000. 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 $17,000. The prayer would not change revenues, but it is expected to save the firm $345,000 per year in before-tax operating costs, mainly labor Campbell's marginal tax rate is onore 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 rest do a. What is the Year 0 net cash flow ps b. What are the net operating cash flows in Years 1, 2, and Year 15 Year 21 Year : What is the additional Year 3 cash flow the after tax Salvage and the return of working capital $ d. If the project's cost of capital 124 what is the NPV of the project? $ Should the machine be purchased

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