You have been asked by the president of your company to evaluate the proposed acquisition of a
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Question:
You have been asked by the president of your company to evaluate the proposed acquisition of a new specialpurpose truck for $ The truck falls into the MACRS year class, is not eligible for either bonus depreciation or Section expensing, and it will be sold after three years for $ Use of the truck will require an increase in NWC spare parts inventory of $ The truck will have no effect on revenues, but it is expected to save the firm $ per year in beforetax operating costs, mainly labor. The firms marginal tax rate is percent.
What will the cash flows for this project be
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