FIN 308 Capital Budgeting Activity The Campbell Company is evaluating the proposed acquisition of a new...

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FIN 308 Capital Budgeting Activity The Campbell Company is evaluating the proposed acquisition of a new milling machine. The machine's base price is $108,000 and it would cost another $12,500 to modify it for special use. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $65,000. The machine would require an increase in net working capital of $5,500. The milling machine would have no effect on revenues, but it is expected to save the firm $44,000 per year in before-tax operating costs. The firm's marginal tax rate is 35%. Calculate the cash flows for this project and determine if this project should be accepted using NPV. The firm's cost of capital is 12%. All calculations must be completed within Excel, using cell references and financial functions. FIN 308 Capital Budgeting Activity The Campbell Company is evaluating the proposed acquisition of a new milling machine. The machine's base price is $108,000 and it would cost another $12,500 to modify it for special use. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $65,000. The machine would require an increase in net working capital of $5,500. The milling machine would have no effect on revenues, but it is expected to save the firm $44,000 per year in before-tax operating costs. The firm's marginal tax rate is 35%. Calculate the cash flows for this project and determine if this project should be accepted using NPV. The firm's cost of capital is 12%. All calculations must be completed within Excel, using cell references and financial functions.