Question: its all one question Intro You're evaluating a new electron microscope for the QA (quality assurance) unit. The microscope will cost $24,000 to buy and

its all one question  its all one question Intro You're evaluating a new electron microscope
for the QA (quality assurance) unit. The microscope will cost $24,000 to
buy and another $2,000 to install, and will be sold for $1,800

Intro You're evaluating a new electron microscope for the QA (quality assurance) unit. The microscope will cost $24,000 to buy and another $2,000 to install, and will be sold for $1,800 after 3 years. It falls into the 3-year MACRS class, with depreciation rates as follows: Year 1 2 Depreciation rate 33% 45% 3 15% 7% The microscope will require an Inventory of spare parts worth $5,000. The equipment will not increase revenue, but will save the company $15,000 in labor costs each year. Your company's marginal tax rate (federal plus state) is 34% and the appropriate cost of capital for this project is 15%. Part 1 Attempt 175 for 10 pts. What is the initial (year-o) free cash flow from the project? Choose the right sign. No decimals Submit Attempt 1/5 for 10 pts. Part 2 What is the free cash flow in year 1? No decimals Submit | Attempt 1/5 for 10 pts. Part 3 What is the free cash flow in year 2? No decimals Submit Attempt 1/5 for 10 pts. Part 4 IB What is the after-tax salvage value at the end of year 3? Submit Part 5 What is the free cash flow in year 3? - Attempt 1/5 for 10 pts. Submit To Attempt 1/5 for 10 pts. Part 4 What is the after-tax salvage value at the end of year 3? No decimals Submit 10 - Attempt 1/5 for 10 pts. Part 5 What is the free cash flow in year 3? No decimals Submit Part 6 10 - Attempt 175 for 10 pts. What is the NPV of this project? Submit

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