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Option 4 missing in the pic is $110,000 What is the correct way to do it and its answer! You have been asked by the

Option 4 missing in the pic is $110,000
What is the correct way to do it and its answer! image text in transcribed
You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $330,000. The truck falls into the MACRS 3 -year class, and it will be sold after 3 years for $58,000, Use of the truck will require an increase in NWC ( $ pare parts inventory of $5,800. The truck will have no effect on revenues, but its expected use at your company will save the firm $85,000 per year in before-tax operating costs, mainly labot. The firm's marginal tax rate is 21 percent. What will the cash flows for this project be during year 3 ? Mumpire Croles $116.023 57748 $211540

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