Question
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 MACR 3-year class, 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 35 percent. What will the cash flow for this project be? (negative should be indicated by a minus sign. Round your answers to 2 decimal places.) Year Wrong answer 0 year 1= 6,500 15,775;16,825; year 2 = 7,875; 18,925;22,500 year 3 = 2,625; 13,675; 30,065; 7,500 All wrong answer. Will someone please give me the correct answer from 0-3
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