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Answer problems 1 1 , 1 2 , 1 3 , and 1 4 based on the following. The president of Real Time Inc. has
Answer problems and based on the following.
The president of Real Time Inc. has asked you to evaluate the proposed acquisition of a new computer. The computer's price is $ and it falls in the MACRS year class. The applicable depreciation rates are and Purchase of the computer would require an increase in working capital of $ The computer would increase the firm's beforetax revenues by $ per year but would also increase operating costs by $ per year. The computer is expected to be used for three years and then sold for $ The firm's marginal tax rate is and the project's cost of capital is
Note: The working capital investment of $ will be recovered at the end of the project and added to the aftertax terminal cash flow from the sale of the equipment.
What is the total value of the terminal year nonoperating cash flows at the end of Year
please show your work not table thank you
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