13.

You have been asked to evaluate the proposed acquisition of a new special-purpose truck. The truck's basic price is $50,000, and it costs another $10,000 to modify it for special use by your firm. The truck falls into the MACRS three-year class (33%, 45%, 15%, 7%), and will be sold after three years for $20,000. Use of the truck requires an increase in net operating working capital (spare parts inventory) of $2,000. The truck has no effect on revenues, but is expected to save the firm $20,000 per year in before-tax operating costs, mainly labor. The firm's marginal tax rate is 40%.What is the net investment in the truck at Year 0?

Group of answer choices

-$65,000

-$52,600

-$55,800

-$50,000

-$62,000