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Submi

You have been asked by the president of your company to evaluate the proposed acquisition of a new special$-$purpose truck for $$190,000.$ The truck falls into the MACRS $5-$year class, and it will be sold after $5$ years for $$19,000.$ Use of the truck will require an increase in NWC $($spare parts inventory$)$ of $$4,900.$ The truck will have no effect on revenues, but it is expected to save the firm $$86,000$ per year in before$-$tax operating costs, mainly labor. The firm's marginal tax rate is $21$ percent. What will the operating cash flows for this project be during year $2?$

Multiple Choice

$$80,708$

$$81,100$

$$128,740$

$$25,200$