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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
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 What is the correct way to do it and its answer!
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