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i got this wrong You must evaluate the purchase of a proposed...

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Finance

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You must evaluate the purchase of a proposed spectrometer for the R&D department. The purchase price of the spectrometer including modifications is $210,000, and the equipment will be fully depreciated at the time of purchase. The equipment would be sold after 3 years for $81,000. The equipment would require a $14,000 increase in net operating working capital (spare parts inventory). The project would have no effect on revenues, but it should save the firm $78,000 per year in before-tax tabor costs. The firm's marginal federal-plus-state tax rate is 25%. a. What is the initial investment outlay for the spectrometer, that is what is the Year O project cash flow? Enter your answer as a positive value. Round your answer to the nearest dollar. $ 224,001 b. What are the project's annual cash flows in Years 1, 2 and 3? Do not round intermediate calculations. Round your answers to the nearest dollar. Year 1: $ 58500 Year 2: $ 58500 Year 3: $ 133250 c. If the WACC is 12%, should the spectrometer be purchased? Yes

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