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 $960,000, and it would cost another $25,000 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 $597,000. The machine would requirean increase in net working capital (inventory) of $15,500. Thesprayer would not change revenues, but it is expected to save thefirm $453,000 per year in before-tax operating costs, mainly labor.Campbell's marginal tax rate is 30%.
A. What is the Year 0 net cash flow? $
B.What are the net operating cash flows in Years 1, 2, and 3? Donot round intermediate calculations. Round your answers to thenearest dollar.
Year 1 $ ?
Year 2 $ ?
Year 3 $ ?
C. What is the additional Year 3 cash flow (i.e, the after-taxsalvage and the return of working capital)? Do not roundintermediate calculations. Round your answer to the nearest dollar.$ ?
D. If the project's cost of capital is 11 %, what is the NPV ofthe project? Do not round intermediate calculations. Round youranswer 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 $960,000, and it would cost another $25,000 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 $597,000. The machine would requirean increase in net working capital (inventory) of $15,500. Thesprayer would not change revenues, but it is expected to save thefirm $453,000 per year in before-tax operating costs, mainly labor.Campbell's marginal tax rate is 30%.A. What is the Year 0 net cash flow? $B.What are the net operating cash flows in Years 1, 2, and 3? Donot round intermediate calculations. Round your answers to thenearest dollar.Year 1 $ ?Year 2 $ ?Year 3 $ ?C. What is the additional Year 3 cash flow (i.e, the after-taxsalvage and the return of working capital)? Do not roundintermediate calculations. Round your answer to the nearest dollar.$ ?D. If the project's cost of capital is 11 %, what is the NPV ofthe project? Do not round intermediate calculations. Round youranswer to the nearest dollar. $ ?