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please show steps using equations Special-Purpose Truck You have been asked by the president of your company to evaluate the proposed acquisition of a new

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Special-Purpose Truck 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 falls into the MACRS three-year class, and it will be sold after three years for $20,000. Use of the truck will require an increase in net operating working capital (spare parts inventory) of $2,000. The truck will have no effect on revenues, but 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 percent. [Note: MACRS table required.] 12. Refer to Special-Purpose Truck. What is the operating cash flow in Year 1? (3 points) a. S17,820 b. $18,254 c. $19,920 d. $20,121 e. $21,737

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