New-Project Analysis The Campbell Company is considering adding a robotic paint sprayer to its production line....

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New-Project Analysis The Campbell Company is considering addinga robotic paint sprayer to its production line. The sprayer's baseprice is $920,000, and it would cost another $21,000 to install it.The machine falls into the MACRS 3-year class, and it would be soldafter 3 years for $469,000. The MACRS rates for the first threeyears are 0.3333, 0.4445, and 0.1481. The machine would require anincrease in net working capital (inventory) of $14,000. The sprayerwould not change revenues, but it is expected to save the firm$332,000 per year in before-tax operating costs, mainly labor.Campbell's marginal tax rate is 25%. (Ignore the half-yearconvention for the straight-line method.) Cash outflows, if any,should be indicated by a minus sign. Do not round intermediatecalculations. Round your answers to the nearest dollar.

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New-Project Analysis The Campbell Company is considering addinga robotic paint sprayer to its production line. The sprayer's baseprice is $920,000, and it would cost another $21,000 to install it.The machine falls into the MACRS 3-year class, and it would be soldafter 3 years for $469,000. The MACRS rates for the first threeyears are 0.3333, 0.4445, and 0.1481. The machine would require anincrease in net working capital (inventory) of $14,000. The sprayerwould not change revenues, but it is expected to save the firm$332,000 per year in before-tax operating costs, mainly labor.Campbell's marginal tax rate is 25%. (Ignore the half-yearconvention for the straight-line method.) Cash outflows, if any,should be indicated by a minus sign. Do not round intermediatecalculations. Round your answers to the nearest dollar.