You must evaluate the purchase of a spectrometer for the r& d department. the base price is $140,000, and it would cost another $30,000 to modify the equipment for special use by the firm. the equipment falls into the macrs 3-year class andwould be sold after 3 years for $60,000. the applicable depreciation rates are 33%, 45%, 15%, and 7% as discussed in appendix 12a. the equipment would require an $8,000 increase in net operating working capital (spare parts inventory). the project would have no effect on revenues, but it should save the firm $50,000 per year in before-tax labor costs. the firm%u2019s marginal federal-plus-state tax rate is 40%. a. what is the initial investment outlay for the spectrometer, that is, what is the year 0 project cash flow? b. what are the project%u2019s annual cash flows in years 1, 2, and 3? c. if the wacc is 12%, should the spectrometer be purchased? explain. a. cost of investment at t = 0: base price (140,000) modification (30,000) increase in nwc (8,000) cash outlay for new machine (178,000) b. annual cash flows: year 1 year 2 year 3after-tax savings depreciation tax savings salvage value tax on sv return of nwc project cash flows 0 0 0 c. year cash flow pv 0 1 2 3 npv = accept o