Question: Problem 10 B Attempt 1/5 for 10 pts. Part 3 What is the incremental cash flow in year 2? 0+ decimals Intro You're evaluating a

 Problem 10 B Attempt 1/5 for 10 pts. Part 3 What

Problem 10 B Attempt 1/5 for 10 pts. Part 3 What is the incremental cash flow in year 2? 0+ decimals Intro You're evaluating a new electron microscope for the QA (quality assurance) unit. The microscope will cost $23,000 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: Submit Year 1 2 3 4 Depreciation rate 33% 45% 15% 7% Part 4 B Attempt 1/5 for 10 pts. What is the net salvage value at the end of year 3? The microscope will require an inventory of spare parts worth $5,000. The equipment will not increase revenue, but will save the company $10,000 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 8%. 0+ decimals Submit 8 Part 1 - Attempt 1/5 for 10 pts. What is the initial (year-o) incremental cash flow from the project? Choose the right sign. B- Attempt 1/5 for 10 pts. Part 5 What is the incremental cash flow in year 3? 0+ decimals 0+ decimals Submit Submit 8 - Attempt 1/5 for 10 pts. 8 Attempt 1/5 for 10 pts. Part 2 What is the incremental cash flow in year 1? Part 6 What is the NPV of this project? 0+ decimals 0+ decimals Submit Submit

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