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You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $190,000. The truck falls into the MACRS 5 year class, and it will be sold after 5 years for $19,000 Use of the truck will require an increase in NWC (spare parts inventory) of $4,900. The truck will have no effect on revenues, but its expected use at your company will save the firm $86,000 per year in before-tax operating costs, mainly labor. The firm's marginal tax, rate is 21 percent. What will the operating cash flows for this project be during year 2 ? Muttiple Choice $128740 $1nvo0 $128,740 $81,100 $25,200 $8070B You have been asked by the president of you company to evaluate the proposed acquisition of a new special-purpose truck for $370,000. The truck falis into the MACRS 3-year elass, and it will be sold after 3 years for $62,000. Use of the truck will recuire an increase in NMC (spare parts inventory) of $6,200, The truck will have no effect on revenues, but its expected use at your company will save the firm $100,000 per year in before-tax operating costs, mainly labor. The firm's marginal tax rate is 21 percent. What will the cash fiows for this project be during year 3? Munticle Choice 5123893 sis70 $123,333 535,70 590507 $1337797 You are evaluating a project for your company. You estimate the sales price to be $540 per unit and sales volume to be 2,400 units in year 1 ; 3,400 units in year 2; and 1,900 units in year 3. The project has a three year ife. Variable costs amount to $340 per unif and fixed costs are $220,000 per year. The project requires an initial investment of $345,000 in assets which will be depreciated straight-line to zero over the three-year project lfe. The actual market value of these assets at the end of year 3 is expected to be $54,000. NWC requirements at the beginning of each year will be approximately 25 percent of the projected sales during the coming year. The tax rate is 21 percent and the required return on the project is 8 percent. What change in NWC occurs at the end of year 1 ? Mumpie Choice $256,500 3202635 $256,500 $202.635 $106850 $135.000