(The following information applies to the next four problems.) The president of Real Time Inc. has asked you to evaluate the proposed acquisition of a new computer. The computer's price is $40,000, and it falls into the MACRS 3-year class. Purchase of the computer would require an increase in net working capital of $2,000. The computer would increase the firm's before-tax revenues by $20,000 per year but would also increase the operating costs by $5,000 per year. The computer is expected to be used for 3 years and then sold for $25,000. The firm's marginal tax rate is 40 percent, and the projects cost of capital is 14 percent. Applicable MACRS rates are 33%, 45%, 15%, 7% 7. What is the investment required at t = 0? -$42,000. -$40,000 -$38,600. d. -$37,600. e -$36,600. 8. What is the operating cash flow in Year 2? a. $ 9,000 b. $10,240 c. $11,687 d. $13,453 $16,200 e. 9. What is the total value of the terminal year non-operating cash flows at the end of Year 3? a. $18,120. b. $19,000. $21,000. . $25,000. $27,000 deos e. 10 . a What is the project's NPV? $2,622. b. $2,803. $2.917. d $5,712. e. $6,438.