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Question 25 (4 points) The CEO of Network World Inc. has asked you to evaluate the proposed acquisition of a new computer. The computer's price

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Question 25 (4 points) The CEO of Network World Inc. has asked you to evaluate the proposed acquisition of a new computer. The computer's price is $ 80,000, and it falls into the MACRS 3-year class. Purchase of the computer would require an increase in net operating working capital of $2,000. The computer would increase the firm's before-tax revenues by $30,000 per year but would also increase operating costs by $ 20,000 per year. The computer is expected to be used for 3 years and then be sold for $25,000. The firm's marginal tax rate is 40 percent, and the project's cost of capital is 14 percent What is the net cash flow at t = 0? Cash outflow should be in negative number, e.g.. -33,000, and do not include the $ sign. Your

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