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You have been asked by the president of your company to evaluate a proposed acquisition of a new truck. The truck basic price is $60,000.

You have been asked by the president of your company to evaluate a proposed acquisition of a new truck. The truck basic price is $60,000. The truck falls in the MACR 3-year class and it will be sold after 3 years for $20,000. The application depreciation rates are 33%, 45%, 15% and 7%. Use of truck will require an increase in net working capital (spare parts) of $2000.

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