You are evaluating a potential purchase of several light duty trucks The initial cost of the trucks will be $ 2 0 6 , 0 0 0 The trucks fall in the MACRS 5 year class that allows depreciation of 2 0 the first year, 3 2 the second year, 1 9 the third year, 1 2 the fourth year, 1 1 the fifth year, and 6 the sixth year You expect to sell the trucks for 2 8 , 8 0 0 at the end of five years The expected revenue associated with the trucks is $ 1 6 1 , 0 0 0 per year with annual operating costs of $ 8 4 , 0 0 0 The firm's marginal tax rate is 2 0 0 What is the after tax operating cash flow for year 4 Group of answer choices $ 2 4 , 7 2 0 $ 4 1 , 8 2 4 $ 6 1 , 6 0 0 $ 5 2 , 2 8 0 $ 6 6 , 5 4 4

Question

You are evaluating a potential purchase of several light   duty trucks  The initial cost of the trucks will be $ 2 0 6 , 0 0 0   The trucks fall in the MACRS 5   year class that allows depreciation of 2 0   the first year, 3 2   the second year, 1 9   the third year, 1 2   the fourth year, 1 1   the fifth year, and 6   the sixth year  You expect to sell the trucks for 2 8 , 8 0 0 at the end of five years  The expected revenue associated with the trucks is $ 1 6 1 , 0 0 0 per year with annual operating costs of $ 8 4 , 0 0 0   The firm's marginal tax rate is 2 0   0     What is the after   tax operating cash flow for year 4   Group of answer choices $ 2 4 , 7 2 0 $ 4 1 , 8 2 4 $ 6 1 , 6 0 0 $ 5 2 , 2 8 0 $ 6 6 , 5 4 4

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You are evaluating a potential purchase of several light - duty trucks. The initial cost of the trucks will be $ 2 0 6 ,

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