Question: idee Excel Online Structured Activity: New project analysis You must evaluate the purchase of a proposed spectrometer for the R&D department. The base price is

 idee Excel Online Structured Activity: New project analysis You must evaluate

idee Excel Online Structured Activity: New project analysis You must evaluate the purchase of a proposed spectrometer for the R&D department. The base price is $80,000, and it would cost another $20,000 to modify the equipment for special use by the form. The equipment falls into the MACRS 3 year class and would be sold after 3 years for $20,000. The applicable depreciation rat are 33, 45%, 15%, and 75. The equipment would require an $12,000 increase in net operating working capital (spare parts inventory). The project would have effect on revenues, but it should save the firm $71,000 per year in before-tax labor costs. The firm's marginal federal-plus-state tax rate is 40%. The data has been collected in the Microsoft Excel Online Ne below. Open the spreadsheet and perform the required analysis to answer the questions below, X Open spreadsheet What is the initial investment outlay for the spectrometer, that is what is the Year 0 project cash flow? Round your answer to the nearest cent. Negative amou should be indicated by minus sign - 112000 h. What are the project's annual cash flows in Years 1, 2, and 37 Round your answers to the nearest cent: In Year 15 in Year 25 In Years If the WACC 12%, should the spectrometer be purchased

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