new Maco Attempts: 5. Problem 12.08 Keep the Highest: 0/5 Click here to read the eBook: Analysis of an Expansion Project NEW PROJECT ANALYSIS You must evaluate the purchase of a proposed spectrometer for the R&D department. The base price is $180,000, and it would cost another $3.000 equipment falls into the MACRS 3-year class and would be sold after 3 years for $63,000. The applicable depreciation rates are .45, 15, and the net operating working capital (spare parts inventory). The project would have no effect on revenues, but it should save the firm $77,000 per year in before t state tax rate is 40%. a. What is the initial investment outlay for the spectrometer, that is what is the Year project cash row Round your neer te he he he costs. There's sign: b. What are the project's annual cash flows in Years 1, 2, and 3? Round your answers to the nearest et In Year 1$ In Year 2$ In Year 3$ C. If the WACC Is 11%, should the spectrometer be purchased? -Select- Sunde