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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 $ 6
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 theMACRSyear 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
beNegative amounts should be indicated by a minus
sign. Round your answers to decimal places.
YEAR: FCF:
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