The president of Real Time Inc. has asked you t evaluate the proposed acquisition of a new computer. The computer's price is $50,000, and it falls into the MACRS 3year 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 $25,000 per year but would also increase operating costs by $15,000 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 operating cash flow in Year 2? Round it to a whole dollar, and do not include the $ sign. Your Answer: You are evaluating the proposed acquisition of a new machine costing $50,000, and it falls into the MACRS 3 -year class. Purchase of the machine would require an increase of net operating working capital of $5,000, which will be recovered when the machine is sold. The machine would increase the firm's revenues by $25,000 per year and its operating costs by $12,000 per year. The machine is expected to be used only for 3 years and then be sold for $18,000. The firm's marginal tax rate is 20 percent, and the project's cost of capital is 14 percent. What is the non-operating terminal cash flows at year 3 ? MACRS 3 -year schedule is as follows: 33%,45%,15%, and 7% for years 1 to 4 , respectively. $18,550 $18,850 $19,180 $19,460 $19,770 $20,100