Question-Camp. Company is considering adding a robotic paint sprayer to its production line. The sprayer’s base price is$1,080,000, and it would cost another $22,500 to install it. The machine falls into the MACRS 3-year class, and it would besold after 3 years for $605,000. The machine would require an increase in net working capital (inventory) of $1 5,500. Thesprayer would not change revenues, but it is expected to save the firm $380,000 per year in before-tax operating costs,mainly labor. Campbell’s marginal tax rate is 35%.A) What is CF0?
B) What is the Operating cash flow for year 1?
C) What is the Operating cash flow for year 3?
D) What is the Non- Operating cash flow for year 3?