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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 $70,000. The truck
you have been asked by the president of your company to evaluate the proposed acquisition of a new special purpose truck for $70,000. The truck falls into the MACRS three-year class is not eligible for either bonus depreciation or section 179 expensing and will be sold after three years for $19,300. Use of the truck will require an increase in NWC (spare parts inventory) of $1300. The truck will have no effect on revenues but it is expected to save the firm $23,900 per year in before tax operating cost, mainly labor. The firms marginal rate is 21%.
what will the cash flow's for this project be? Negative amount should be indicated by minus sign. round your answer to two decimal places.
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