Problem 14 2 3 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 Depreciation rate 33% 45% 15% 7% 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 13% Part 1 B- Attempt 1/10 for 10 pts. What is the initial (year-O) cash flow from assets from the project? Choose the right sign -23000 Correct At the beginning of the project, EBIT and depreciation are both zero. Initial net capital spending is the cost of purchase and installation: NCSo = 16,000 + 2,000 = 18,000 This is the amount that can be depreciated over time: BVo = 18,000 The required spare parts create a change in networking capital: ANWC = 5,000 What is the cash flow from assets in year 1? 0+ decimals Submit SE Attempt 6/10 for 10 pts. Part 3 What is the cash flow from assets in year 2? 0+ decimals Submit Part 4 B Attempt 7/10 for 10 pts. What is the after-tax salvage value at the end of year 3? 0+ decimals Submit IB Attempt 5/10 for 10 pts. Part 5 What is the cash flow from assets in year 3? JB Attempt 5/10 for 10 pts. Part 5 What is the cash flow from assets in year 3? 0+ decimals Submit JB Attempt 3/10 for 10 pts. Part 6 What is the NPV of this project? 0+ decimals Submit