The president of Real Time Inc. has asked you to evaluate the proposed acquisition of a new computer. The computer's price is $70,000, and it falls into the MACRS 3 year class. Purchase of the computer would require an increase in net operating working capital of $4,000. The computer would increase the firm's before-tax revenues by $30,000 per year but would also increase operating costs by $16,000 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 Answer: The president of Real Time Inc. has asked you to evaluate the proposed acquisition of a new computer. The computer's price is $70,000, and it falls into the MACRS 3 year class. Purchase of the computer would require an increase in net operating working capital of $4,000. The computer would increase the firm's before-tax revenues by $30,000 per year but would also increase operating costs by $16,000 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