Question: The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $ 9 9 0 , 0
The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $ and it would cost another $ to install it The machine falls into the
MACRS year class the applicable MACRS depreciation rates are and and it would be sold after years for $ The machine would require an increase in net
working capital inventory of $ The sprayer would not change revenues, but it is expected to save the firm $ per year in beforetax operating costs, mainly labor. Campbell's marginal tax
rate is
c What is the additional Year cash flow ie the aftertax salvage and the return of working capital Do not round intermediate calculations. Round your answer to the nearest dollar.
$
d If the project's cost of capital is what is the NPV of the project? Do not round intermediate calculations. Round your answer to the nearest dollar.
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