Question 9 5 pts The Campbell Company is considering adding a...

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Accounting

Question 9
5 pts
The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $900,000, and it would cost another $22,500 to install it. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $504,000. 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 $12,500. The sprayer would not change revenues, but it is expected to save the firm $325,000 per year in before-tax operating costs, mainly labor. Campbell's marginal tax rate is 25%. The cost of capital is 8%. What is the NPV of this potential project? Do not round intermediate calculations. Round your final answer to the nearest dollar.
*NOTE...depending on your rounding procedures, you might 'miss' MY version of the right answer by a few dollars (probably less than $100dots maybe more like a few dollars). So in this case, you may select the 'close' answer below....I've intentionally left large gaps between the potential answer option
$407,589
$304,812
$80,227
$202,900
$115,226
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