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 $830,000, and it would cost another $23,500 to install it.The machine falls into the MACRS 3-year class (the applicable MACRSdepreciation rates are 33.33%, 44.45%, 14.81%, and 7.41%), and itwould be sold after 3 years for $582,000. The machine would requirean increase in net working capital (inventory) of $18,000. Thesprayer would not change revenues, but it is expected to save thefirm $363,000 per year in before-tax operating costs, mainly labor.Campbell's marginal tax rate is 35%. What is the Year 0 net cashflow? $ What are the net operating cash flows in Years 1, 2, and 3?Do not round intermediate calculations. Round your answers to thenearest dollar. Year 1 $ Year 2 $ Year 3 $ What is the additionalYear 3 cash flow (i.e, the after-tax salvage and the return ofworking capital)? Do not round intermediate calculations. Roundyour answer to the nearest dollar. $ If the project's cost ofcapital is 14 %, what is the NPV of the project? Do not roundintermediate calculations. Round your answer to the nearest dollar.$ Should the machine be purchased?

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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 $830,000, and it would cost another $23,500 to install it.The machine falls into the MACRS 3-year class (the applicable MACRSdepreciation rates are 33.33%, 44.45%, 14.81%, and 7.41%), and itwould be sold after 3 years for $582,000. The machine would requirean increase in net working capital (inventory) of $18,000. Thesprayer would not change revenues, but it is expected to save thefirm $363,000 per year in before-tax operating costs, mainly labor.Campbell's marginal tax rate is 35%. What is the Year 0 net cashflow? $ What are the net operating cash flows in Years 1, 2, and 3?Do not round intermediate calculations. Round your answers to thenearest dollar. Year 1 $ Year 2 $ Year 3 $ What is the additionalYear 3 cash flow (i.e, the after-tax salvage and the return ofworking capital)? Do not round intermediate calculations. Roundyour answer to the nearest dollar. $ If the project's cost ofcapital is 14 %, what is the NPV of the project? Do not roundintermediate calculations. Round your answer to the nearest dollar.$ Should the machine be purchased?