You must evaluate the purchase of a proposed spectrometer for the r& d department. the base price is $90,000, and it would cost another $13,500 to modify the equipment for special use by the firm. the equipment falls into the macrs 3-year class and would be sold after 3 years for $36,000. the applicable depreciation rates are 33%, 45%, 15%, and 7%. the equipment would require a $5,000 increase in net operating working capital (spare parts inventory). the project would have no effect on revenues, but it should save the firm $47,000 per year in before-tax labor costs. the firm's marginal federal-plus-state tax rate is 40%.

what is the initial investment outlay for the spectrometer, that is, what is the year 0 project cash flow? round your answer to the nearest cent. negative amount should be indicated by a minus sign. $

what are the project's annual cash flows in years 1, 2, and 3? round your answers to the nearest cent.

in year 1 $
in year 2 $
in year 3 $

if the wacc is 14%, should the spectrometer be purchased?