Question: The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $1,080,000, and it would cost another

 The Campbell Company is considering adding a robotic paint sprayer to

The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $1,080,000, and it would cost another $18,000 to install it. The machine falls into the MACRS 3 - year class, and it would be sold after 3 years for $596,000. The MACRS rates for the first three years are 0.3333,0.4445, and 0.1481 . The machine would require an increase in net working capital (inventory) of $18,000. The sprayer would not change revenues, but it is expected to save the firm $380,000 per year in before-tax operating costs, mainly labor. Campbeli's marginal tax rate is 25%. (Ignore the half-year convention for the straight-line method.) Cash outtlows, if any, should be indicated by a minus sign. Do nof round intermediate calculations. Round your answers to the nearest dollar. What is the Year-0 net cash flow? s What are the net operating cash flows in Years 1,2 , and 3 ? Yeat 1: $ Year 2: 5 Year 3:$ What is the additional Year-3 cash flow (Le, the after-tax salvage and the return of working capifal)? If the project's cost of capital is 148S, what is the NPV of the project? s Should the machine be purchayed

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