You have been asked by the president of your company to evaluate the proposed acquisition of a new special$-$purpose truck. The truck's basic price is $$63,000.$ The truck will be fully depreciated to $0$ using straight line depreciation and it will be sold after three years for $$25,000.$ Use of the truck will require an increase in net working capital $($spare parts inventory$)$ of $$2,000.$ The truck will have no effect on revenues, but it is expected to save the firm $$21,000$ per year in before$-$tax operating costs, mainly labor. The firm's marginal tax rate is $40$ percent.

a$.$ What is the initial investment outlay for the truck? $($That is$,$ what is the Year $0$ net cash flow?$)$

b$.$ What is the incremental operating cash flow in Year $1?$

c$.$ What is the terminal $($nonoperating$)$ cash flow at the end of Year $3?$

d$.$ The truck's required rate of return is $10$ percent. What is its NPV$?$