The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $

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The Campbell Company is considering adding a robotic paintsprayer to its production line. The sprayer's base price is$1,120,000, and it would cost another $18,500 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 $615,000. The machine would requirean increase in net working capital (inventory) of $16,500. Thesprayer would not change revenues, but it is expected to save thefirm $424,000 per year in before-tax operating costs, mainly labor.Campbell's marginal tax rate is 30%. Cash outflows, if any, shouldbe indicated by a minus sign. Do not round intermediatecalculations. Round your answers to the nearest dollar.
What is the Year-0 net cash flow?
$
What are the net operating cash flows in Years 1, 2, and 3?
What is the additional Year 3 cash flow (i.e, the after-taxsalvage and the return of working capital)?
$
If the project's cost of capital is 12 %, what is the NPV of theproject?
$
Should the machine be purchased?