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You have been asked by the president of your company to evaluate the proposed accuisition of a new special purpose truck for $280,000, The truck

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You have been asked by the president of your company to evaluate the proposed accuisition of a new special purpose truck for $280,000, The truck falls into the MACRS 10-year class, and it will be sold after 10 yeurs for $53,000, Hse of the track will require an increase in NWC (spare parts irventory of $5,300. The truck will have no effect on revenues, but it is expected to save the firm $83,000 per year in before tax opetating costs, mainly labor. The ferms marginal tax rate is 21 percent. What will the cash flows for this project be during year 3 ? Multiple Cboice $105890 574.037 $28,000 $33717

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