Question: New-Project Analysis The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $1,090,000, and it would
New-Project Analysis The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $1,090,000, and it would cost another $18,000 to install. The machine talls into the MACRS 3-year class (the applicable MACRS depreciation rates are 33.33%, 44.45%, 14.81% and 741%), and it would be sold after 3 years for $603,000. The machine would require an increase in net working capital inventory) of $18,500. The sprayer would not change revenues, but it is expected to save the firm 5408,000 per year in before tax operating costs, mainly labot Campbell's marginal tax rate is 40% Cash outflows, ar, should be indicated by a minus sign. Do not round stermediate clations. Round your answers to the nearest dollar a. What is the Year net cash flow b. What are the net operating cash flows in Years 1, 2, and 3 What is the Year as to the whertax salvage and the return of working capital)? 5 d the projects of capital what is the of the 5 Should the moderne
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