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Use the MACRS table from the textbook. The president of Real Time Inc. has asked you to evaluate the proposed acquisition of a new computer.
Use the MACRS table from the textbook.
The president of Real Time Inc. has asked you to evaluate the proposed acquisition of a new computer. The computer's price is $ and it falls into the MACRS year class. Purchase of the computer would require an increase in net operating working capital of $ The computer would increase the firm's beforetax revenues by $ per year but would also increase operating costs by $ per year. The computer is expected to be used for years and then be sold for $ The firm's marginal tax rate is percent, and the project's cost of capital is percent.
What is the operating cash flow in Year
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