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New-Project AnalysisThe president of the company you work for has asked you toevaluate the proposed acquisition of a new chromatograph for thefirm’s R&D department. The equipment's basic price is $77,000,and it would cost another $14,000 to modify it for special use byyour firm. The chromatograph, which falls into the MACRS 3-yearclass, would be sold after 3 years for $31,400. The MACRS rates forthe first 3 years are 0.3333, 0.4445 and 0.1481. Use of theequipment would require an increase in net working capital (spareparts inventory) of $2,880. The machine would have no effect onrevenues, but it is expected to save the firm $22,900 per year inbefore-tax operating costs, mainly labor. The firm's marginalfederal-plus-state tax rate is 40%. Cash outflows and negative NPVvalue, if any, should be indicated by a minus sign. Do not roundintermediate calculations. Round your answers to the nearestdollar.What is the Year-0 net cash flow?$ What are the net operating cash flows in Years 1, 2, and 3? Donot include recovery of NWC or salvage value in Year 3'scalculation here.Year 1:$ Year 2:$ Year 3:$ What is the additional cash flow in Year 3 from NWC andsalvage?$ If the project's cost of capital is 12%, what is the NPV of theproject? .$ Should the chromatograph be purchased? select: ( yes / No)