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only question 5 step by step plz.. a)20,000 b)15,600 c)12,000 d)8,000 You have been asked by the president of your company to evaluate the proposed
only question 5 step by step plz..
a)20,000
b)15,600
c)12,000
d)8,000
You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck. The truck's basic price is $50, 000, and it will cost another $10, 000 to modify it for special use by your firm. The truck class and it will be sold after three years for $20, 000. The truck falls in the MACRS 3-year class, and it operating working coital (spare pans inventory) of $2, 000. The truck will have no effect on revenues, but its is expected to save the firm $20, 000 per year in before-tax it is expected to save the firm $20, 000 per year in before-tax operating costs, mainly labor. The firm's marginal tax rate is 40% What is CFFA at year 0? a. -$62, 000. b. -$65, 010. c. -$47, 000. d. -$50, 000. What is depreciation at year 2? a. $9, 000. b. $19, 800. c. $27, 000. d. $4, 200. What is CFFA at year 2? a. $10, 000. b. $74, 000. c. $35, 000. d. $22, 800. What is deprecation tax shield benefit at year 1? a. $19, 800. b. $7, 920. c. $30, 000. d. $10, 800. What is after-tax cost saving at year 1Step by Step Solution
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