The Campbell Company is considering adding a robotic paintsprayer to its production line. The sprayer's base price is$990,000, and it would cost another $20,500 to install it. Themachine 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 $518,000. The machine would requirean increase in net working capital (inventory) of $9,000. Thesprayer would not change revenues, but it is expected to save thefirm $440,000 per year in before-tax operating costs, mainly labor.Campbell's marginal tax rate is 40%.

1. What is the Year 0 net cash flow?
   $_____________
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5. 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	$_____________

6. 
   
7. 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 nearestdollar.
   $_____________
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11. If the project's cost of capital is 14 %, what is the NPV ofthe project? Do not round intermediate calculations. Round youranswer to the nearest dollar.
    $_____________
    
    Should the machine be purchased?
    -Select-YesNo