Question: Hello! I am looking for some help with this problem! Thank you so much! mm 11-06 . New-Project Analysis 0: The Campbell Company is considering

Hello! I am looking for some help with this problem! Thank you so much!

mm 11-06 . New-Project Analysis 0: The Campbell Company is considering adding a robotic paint sprayer to its production line. The 'sprayer's base price is $980, 000, and it would cost another $17, 500 to install it. The machine falls '2 into the MACRS 3-year class (the applicable MACRS depreciation rates are 33.33%, 44.45%, ' 14 81%, and 7. 41%), and it would be sold after 3 years for $548, 000. The machine would require =an increase in net working capital (inventory) of $14,500. The sprayer would not change revenues, Ibut it is expected to save the rm $487, 000 per year in before- -tax operating costs, mainly labor. Campbell s marginal tax rate is 30%. ' a. What is the Year 0 net cash flow? m , $37 b. What are the net operating cash ows in Years 1, 2, and 3? Do not round intermediate calculations. Round your answers to the nearest dollar. Year 1 $ Year 2 Year 3 . What is the additional Year 3 cash flow (i. e, the after-tax salvage and the return of working capital)? Do not round intermediate calculations. Round your answer to the nearest dollar. 5; i . If the project's cost of capital is 13 %, what is the NPV of the project? be not round intermediate calculations. Round your answer to the nearest dollar. *3 Should the machine be purchased
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