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The president of your company, MorChuck Enterprises, has asked you to evaluate the proposed acquisition...

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Accounting

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The president of your company, MorChuck Enterprises, has asked you to evaluate the proposed acquisition of a new chromatograph for the firm's RSD department. The class, would be sold after 3 vears for $30,400, The maces rates for the first three years are 0.3333,0.4445 and 0.1481 . Use of the equipment would require an increase in net warking capital (opare parts inventory) of $4,000. The machine would have no eflect on revenues, but it is expected to save the firm $27,800 pec year in before-tax. coerating cents, mainly labor. The firm's marginal federal-plus-tatat tax rate is 25%, Cash outhows and negative Nip value, if any, should be indicated by a thinus sign. Do not round intermediate calculations. Round your snswers to the nearest dollar. a What is the Yeario net cath flow? 5 b. What sie the project recurring cash fuws in Years 1, 2, and 37 Year 11 Year 2 : Year 3: c. What is the Additional (naneperatino) cash fow in Year 3 ? Q. If the project cout of capital is 114 , mhat is the NPV of the prosect? 1 Shauld the chromatogroph be purchasied

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