You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $50,000. The truck falls into the MACRS 3-year class, and it will be sold after three years for $19,700. Use of the truck will require an increase in NWC (spare parts inventory) of $1,700. The truck will have no effect on revenues, but it is expected to save the firm $17,000 per year in before-tax operating costs, mainly labor. The firms marginal tax rate is 35 percent. What will the cash flows for this project years 0 to 3 be?

Year	0	1	2	3
FCF

From Student: In addition to this - please help me understand how you get depreciation calculated in detail. This is how I got stuck and needed to just ask the whole question.