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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 $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 4 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?
Group of answer choices
$11,687
$ 9,000
$13,453
$10,240
$16,110

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