Please answer Questions 3-5 based on the information below: The president of the company you work for has asked you to evaluate the proposed acquisition of a new chromatograph for the firm's R\&D department. The equipment's basic price is $50,000, and it would cost another $15,000 to modify it for exclusive use by your firm. The chromatograph, which falls into the MACRS 3-year class, would be sold after 3 years for $25,000. The MACRS rates are as follows: 0.3333,0.4445,0.1481 and 0.0741. Use of the equipment would require an increase in net working capital (spare parts inventory) of $6,000. The machine would have no effect on revenues, but it is expected to save the firm $30,000 per year in before-tax operating costs, mainly labor. The firm's marginal tax rate is 21%. If the cost of capital is 12%, 3. What is the Year 0 Net Cash Flow? A $71,000 B $65,000 C $71,000 D $65,000 E $50,000 4. What is the After-tax salvage value at the end of year 3 ? A $24,000 B $18,000 C. $20,554 D $20,761 E $20,658 5. Should the chromatograph be purchased? ANO,NPV=56,900 B NO,NPV=$8,198 C YES, NPV =$9,433 D. YES,NPV=$15,309 E. YES, NPV =$98,537