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Question 30 (3.5 points) You are evaluating a potential investment in equipment. The equipment's basic price is $190,000, and shipping costs will be $5,700. It

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Question 30 (3.5 points) You are evaluating a potential investment in equipment. The equipment's basic price is $190,000, and shipping costs will be $5,700. It will cost another $24.700 to modify it for special use by your firm, and an additional $11,400 to install it. The equipment falls in the MACRS 3-year class that allows depreciation of 33% the first year, 45% the second year, 15% the third year, and 7% the fourth year. You expect to sell the equipment for 27,800 at the end of three years. The equipment is expected to generate revenues of $181,000 per year with annual operating costs of $92,000. The firm's marginal tax rate is 40.0%. What is the after-tax operating cash flow for year 2? -$9,186 $95,124 $89,000 -$15,310 $104,310

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