Problem 13 Intro You're evaluating a new electron microscope for the QA (quality assurance) unit. The microscope will cost $16,000 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: Year 1 2 Depreciation rate 33% 45% 3 15% 4 7% The microscope will require an inventory of spare parts worth $5,000. The equipment will not increase revenue, but will save the company $11,000 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 14%. Part 1 IB Attempt 1/5 for 10 pts. What is the initial (year-0) free cash flow from the project? Choose the right sign. No decimals Submit IB Attempt 175 for 10 pts. Part 2 What is the free cash flow in year 1? No decimals Submit B Attempt 1/5 for 10 pts. Part 3 What is the free cash flow in year 2? No decimals Submit Attempt 1/5 for 10 pts. Part 4 IB What is the after-tax salvage value at the end of year 3? No decimals Submit IB Attempt 1/5 for 10 pts. Part 5 What is the free cash flow in year 3? No decimals Submit IE Part 6 What is the NPV of this project? Attempt 1/5 for 10 pts. No decimals Submit