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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
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 3-year class, is not eligible for either bonus depreciation or Section 179 expensing, and it will be sold after three years for $20,100. Use of the truck will require an Increase In NWC (spare parts Inventory) of $2,100. The truck will have no effect on revenues, but it is expected to save the firm $17,000 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? (Negative amounts should be Indicated by a minus sign. Round your answers to 2 decimal places.) FCF Year 0 2 3
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