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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 $ 6

You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $60,000. The truck falls into the MACRS 3-year class, is not eligible for either bonus depreciation or Section 179 expensing, and it will be sold after three years for $19,200. Use of the truck will require an increase in NWC (spare parts inventory) of $1,200. The truck will have no effect on revenues, but it is expected to save the firm $20,600 per year in before-tax operating costs, mainly labor. The firm's marginal tax rate is 21 percent.
What will the cash flows for this project be?
Note: Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.
Answer is complete but not entirely correct. (year 2 is wrong)
\table[[Year,,0,1,2,3],[FCF,$,(61,20000)$,20,47358$,21,847,70ox$,35,441.72
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