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#2 please have already The following information applies to the next three problems. Your company is evaluating the purchase of a new computer system. The

#2 please
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have already The following information applies to the next three problems. Your company is evaluating the purchase of a new computer system. The new system costs $60,000 plus $10,000 for shipping and installation and it will be fully depreciated at the time of purchase. The system will require an increase in net working capital of $5,000. The system will not increase revenues, but it will save the firm $40,000 per year in before tax operating costs. The system will be used for 3 years and then sold for $5,900 at the end of year 3. The firm's marginal tax rate is 40%. 2. What is the net investment required today at t-O? $36,000 B. $40,000 C. $44,000 D. $47,000 E. $55,000 A. 3. What is the operating cash flow for this project in year 2? A. $5,100 B. $24,000 C. $42,900 D. $50,500 E. $61,500 4. What is the terminal, non-operating cash flow at the end of year 3? A. $5,500 B. $5,900 C. $7,800 D. $8,540 E. $10,900

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