8 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 operating working capital of $2,000. The computer would increase the firm's before-tax revenues by $20,000 per year but would also increase operating costs by $5,000 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 . Assume that the firm has many other projects and is profitable. Use the table below for depreciation calculations Recovery Allowance Percentage Class of Investment 3-Year 5 Year 7-Year 10-Year Ownership Year 33 45 15 20 32 19 12 11 10 18 14 1 2 3 4 5 6 7 8 9 10 11 14 25 17 13 9 9 9 4 NON 7 7 7 6 3 8(a) 5 points What is the net investment required at t=0? What is the operating cash flow in Year 17 I 8(b) 5 points What is the operating cash flow in Year 1 8(e) 5 points What is the total value of the terminal year non-operating cash flows at the end of Year 32