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e Left:0:28:02 Ashley Trawick: Attempt 1 |-64,000 Answer Question 26 (4 points) You are evaluating the proposed acquisition of a new computer. The computer's price

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e Left:0:28:02 Ashley Trawick: Attempt 1 |-64,000 Answer Question 26 (4 points) You are evaluating the proposed acquisition of a new computer. The computer's price is $ 50,000, and it falls into the MACRS 3-year class. Purchase of the computer would require an increase in net operating working capital of $2,000. The computer would increase the firm's before-lax revenues by s 28 ,000 per year but would also increase operating costs by $ 14,000 per year. The computer is expected to be used for 3 years and then be sold for $25,000. The firm's marginal tax rate is 40 percent, and the project's cost of capital is 14 percent. What is the operating cash flow in Year 2? Round it to a whole dollar, and do not include the S sign. Year MACRS Percent 0.33 0.45 0.15 0.07 WN- Your

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