Stars Course 11: Assignment - Cash Flow Estimation and Risk Analysis > The president of your company, MorChuck Enterprises, 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 $79,000, and it would cost another $15,500 to modify it for special use by your firm. The chromatograph, which falls into the MACRS 3. year dass, would be sold after 3 years for $29,200. The MACRS rates for the first three years are 0.3333, 0.4145 and 0.1481. (anore the half-year convention for the straight line method.) Use of the equipment would require an increase in net working capital (spare parts inventory) of $3,750. The machine would have no effect on revenues, but it is expected to save the firm $31,400 per year in before-tax operating costs, mainly labor. The firm's marginal federal-plus-state tax rate is 25% Cash outflows and negative NPV value, if any, should be indicated by a minus sign. Do not round intermediate calculations, Round your answers to the nearest dollar. a. What is the Year-O net cash flow? b. What are the net operating cash flows in Years 1, 2, and 37 (Note: Do not include recovery of NWC or salvage value In Year Es calculation here.) Year 1: Year 2 Year 3: c. What is the additional (nonoperating) cash flow In Year 3? d. If the project's cost of capital is 1296, what is the NPV of the project Should the chromatograph be purchased