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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 $ 3

You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $370,000. The truck falls into the MACRS 3-year class, and it will be sold after 3 years for $62,000. Use of the truck will require an increase in NWC (spare parts inventory) of $6,200. The truck will have no effect on revenues, but it is expected to save the firm $100,000 per year in before-tax operating costs, mainly labor. The firm's marginal tax rate is 21 percent. What will the cash flows for this project be during year 3?
Multiple Choice
$133,797
$123,333
$35,710
$90,507
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