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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 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 firm's 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.
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