Version A (The following information applies to the next four problems.) You have been asked by the president of your company to new computer. The computer's price is $40,000, and it falls into the MACRS three-year class (allowance percentages 33%, 45%, 15%, 7%) Purchase of the computer would require an increase in net working capital of $2,000. The computer would reduce the firm's before-tax operating costs by $15,000 per year. The computer is expected to be used for 3 years and then be sold for S25.000. The firm's tax rate is 40%, and the project's cost of capital is 14%. The net working capital investment will be recouped at the end of year 3. evaluate the proposed acquisition of a 37. What is the initial cash flow at t-0? A. -$42,000 B.-$40,000 C. -$38,600 D. -$37,600 E. $36,600 38. What is the operating cash flow in Year 2? A. $ 9,000 B. $10,240 C. $11,687 D. $13,453 E. $16,200 39. What is the total terminal (non-operating) cash flow at the end of Year 3? A. $18,120 B. $19,000 C. $21,000 D. $25,000 E. $27,000