Question: Problem 1106 Hint(s) Check My Work Problem Walkthrough Problem 11-06 The Campbell Company is considering adding a robotic paint sprayer to its production line. The
Problem 1106 Hint(s) Check My Work Problem Walkthrough Problem 11-06 The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's bave price is $60,000, and it would cost another $21,000 to install it. The machine falls into the MACRS)year as the applicable HACRS depreciation rates are 33.33, 44.45%, 14.81%, and 7.41%), and it would be sold after years for $6 ,000. The machine would require an increase in net working capital inventory of $12,500. The sprayer would not change revenues, but it is expected to save the firm 47.000 per year in before-tax conting costs mainly labor Campbells marginal tax rate What is the Year net cash flow? What are the reserw o w is Years 1, 2 and 37 Do not found intermediate cautions found your answers to the nearest dolls What is the additional Year cash flow the tax salvage and the return of working capital? Do not round intermediate calculations. Round your answer to the nearest do If the project's cost of capital is 14 , what is the NPV of the project? Do not round intermediate calculations, Round your answer to the nearest dollar Hint(s) Check My Work
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