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Capital Budgeting Cash Flow Estimation: Please show me how to do the following by either using formulas and a Financial calculator. No excel. You, as

Capital Budgeting Cash Flow Estimation: Please show me how to do the following by either using formulas and a Financial calculator. No excel.

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You, as the Vice President of Finance of Vegas Delivery.com, are evaluating the proposed acquisition of a new delivery truck. The new truck's basic price is $9o,ooo and the freight and modification costs amount to $10,ooo. Your company have spent $5,ooo last month as a non-refundable down payment on another truck from a different manufacturer but decided to cancel the order because you found out the truck under current consideration is a much better one The new truck would increase the company's revenues by $7o,ooo and also increase before-tax operating costs by $40,ooo per year. The new truck will be depreciated with the straight line method to zero value over 4 years. And you expect to sell the new truck at the end of year 4 for $30,000. There will be a one-time increase of net working capital of $30,ooo. Inaddition, Vegas will need to pay an additional $8,ooo annual interest payment for 4 yearsto finance the purchase of the truck. Vegas' tax rate is 30%. 1. What is the initial investment of this project? 2. Determine the after-tax operating cash flow associated with purchasing the new truck for year 4. 3. Determine the free cash flow associated with purchasing the new truck for year 4

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