The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $1,000,000, and it would cost another $23,000 to install it. The machine falls into the MACRS 3-year class (the applicable MACRS depreciation rates are 33.33%, 44.45%, 14.81%, and 7.41%), and it would be sold after 3 years for $664,000. The machine would require an increase in net working capital (inventory) of $14,000. The sprayer would not change revenues, but it is expected to save the firm $351,000 per year in before-tax operating costs, mainly labor. Campbell's marginal tax rate is 30%.

1. What is the Year-0 net cash flow?
2. $
5. What are the net operating cash flows in Years 1, 2, and 3? Round your answers to the nearest dollar.
6. Year 1$Year 2$Year 3$
8. What is the additional Year-3 cash flow (i.e, the after-tax salvage and the return of working capital)? Round your answer to the nearest dollar.
9. $
12. If the project's cost of capital is 13 %, what is the NPV of the project? Round your answer to the nearest dollar.
13. $
15. Should the machine be purchased?
16. -Select-
17. Yes
18. No