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You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $50,000. The truck falls
You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $50,000. The truck falls into the MACRS three-year class, and it was besald after three years for $20,000. Use of the truck will require an increase in NWG (spare parts Inventory of $2.000. The truck will have no effect on revenues, but it is expected to save the firm $20,000 per year in before-tax operating costs, mainly labor. The firm's marginal tax rate is 40 percent What will the free cash flows for this project be? Assignments Grades 10 pts 30 Zoom Meetings BryteWave Course Materials Year 0 Cash flow, -$52.500: Year 1 Cash flow: $18.666; Year 2 Cash flow. $22.890, Year 3 Cash Rowe $99.944 Year 0 Cash flow-$50,000 Year 1 Cash flow. $18.666; Year 2 Cash flow. $20,890, Year 3 Cash Powr $22 444 Brainfuse Online Tutoring Year 0 Cash flow. -$50,000, Year 1 Cash flow. $18.666; Year 2 Cash flow $21,890, Year 3 Cash now $26.444 Year 0 Cash flow. -$52.500. Year 1 Cash flow $18,666 Year 2 Cash flow, $20,890. Year 3 Cash Bow $30.944
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