A capital investment Tractor Unit for use Over-The-Road has the following current and projected cash flows during the recovery period. Using MACRS depreciation with half-year convention, what will be its book value in year three?

1. A capital investment" Tractor Unit for use Over-The-Road has the following current and projected cash flows during the recovery period. Using MACRS depreciation with half-year convention, what will be its book value in year three? Initial Cost ($) $300,000 $150,000 Revenue ($/yr) Maintenance ($/yr) $10,000 Tax Rate 25% Market Rate 5% Inflation Rate 4%