Question: I need help with a) and d). New-Project Analysis The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's

I need help with a) and d).
I need help with a) and d). New-Project Analysis The Campbell Company

New-Project Analysis The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $990,000, and it would cost another $16,500 to Install it. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $577,000. 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 $17,500. The sprayer would not change revenues, but it is expected to save the firm $355,000 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? 1024000 3 $ b. What are the project recurring cash flows in Years 1, 2, and 37 Year 1:$ 350116.61 Year 2:5 378097.31 Year 3: $ 303515.66 c. What is the additional Year 3 cash flow (1.e, the after tax salvage and the return of working capital? $ 468895.41 d. If the project's cost of capital is 15%, what is the NPV of the project? 5 91717.94 Hide Feedback Partially Correct Check My Work remainin)

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